Where’s the bottom?

PSEi All 200320.PNG

The Philippines Stocks Exchange Index (PSEi) touches to its highest points for the first time on 14-Sep-2010 at 4,011.27 just a hairline away of yesterday’s (19-Mar-2020) lowest points at 4,039.15.

PSEi hits its deepest points on 28-Oct-2008 at 1,684.72. In more than a decade of the bull market run, it totally wipeout its gains of 438.86% from its peak points on 29-Jan-2018 at 9,078.37.

The coronavirus stock market crash has left many investors asking: Where's the bottom?

Stock Market pundits love to tell individual investors that it's impossible to time the market, but that couldn't be further from the truth. Just like signs of institutional selling are seen at market tops, signs of institutional buying are seen at market bottoms.

Today’s lowest points at 4,677.66 is the first higher-high, if the next trading low is higher than today, that’s the second higher-highs and so forth. If it holds at this pattern until the seventh time then probably yesterday is the bottommost points of PSEi.

Otherwise low points at 3,715.01 on 26-Sep-2011 is in the besiege of possibility. If it fails to grip at this level, then other low points at 2,787.66 on 09-Feb-2010 will be the next support.

I will consider the key points at 1,684.72 on 28-Oct-2008 as the near than far probability to be the next support level in the proximate term. I already explained why in my previous blogs.

If you’re a day-trader just follow the trend and enjoy the ride.

CONCLUSION: No one knows when the coronavirus stock market crash will end, but sticking to your proven strategies can result in tidy profits during the early stages of every newly confirmed market trend.

DISCLAIMER: I'm not a Certified Financial Planner. Published herein is my personal opinion and should not be construed as a recommendation, an offer, or solicitation for the subscription, purchase or sale of any securities.

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