Last weekend I asked: It’s a wonder, can the index managers prevent this or defy market forces? Or will they be able to keep the correction stage moderate?
For this week, they seem to have provided an answer: Profit taking is taboo! There is no such thing as risk or valuations! Domestic stocks can only go up forever!!!
Today, they ensured that the record high of the other week had to be surpassed...so the last minute pump.
Mission accomplished. The chart has been made.
Basically a three industry pump for the day.
Such has been a rare phenomenon in the first run up to 7,400 in 2013, but became rampant from 4Q 2014 onwards. Especially now where marking the close has almost been a daily affair.
Perhaps the decline of last week caught these managers by surprise, so they started the week (Monday March 2nd) with a full scale assault…
Marking the close had been more broadbased then than today…
...where almost every sector had been pumped.
But then the following day, they decided instead to a last minute dump…
Curiously, this week's pump had an average weekly peso volume that has been the second lowest since the week ending November 21, 2014.
All these are just signs of the quality of the so-called record run. It’s not just about wild or unbridled or hysteric speculations but of the gaming the index to ensure that the flow speculation is maintained.
For now this won’t be an issue because it
benefits the establishment. But like anywhere else when the cycle turns,
my guess is that this will be an issue.
No comments:
Post a Comment