Phisix: Today’s Incredible 8,000 Pump…and Dump!

Today’s activities as described by the PSE: 

Despite the pullback at the end of the session, breaking the 8,000 mark is an indication of the confidence level that investors have on the market. This conviction is supported by the prevailing positive sentiment in local developments as well as in the region as seen by gains in most Asian bourses 

With today's .27% gain, the PSE goes on to tout the 22nd record breaking streak and the cumulative 9.3% gains for the year. 

Well, do the following charts reveal that today’s activities has been about 'confidence'? (all charts from colfinancial) 

The Phisix

By sectors 

Finance 

Industrials

Holdings 

Property 

Service 

What has the above images shown? 

The Phisix was sharply up from the opening bell and drifted at the 8,000 levels for MOST of the day and THROUGH the closing minutes! At the pre-runoff period, the index managers decided to take profits off the table and executed a MASSIVE COORDINATED DUMP of big ticket issues across the above sectors, leaving the hapless greater fools holding the bag! 

About an astounding 80% of today's gains going toward the pre-runoff period had been erased!

In context, today's drama has been about a massive early Pump…then a fantastic "marking the close" dump! 

Truly awesome! 

Pump and Dump as defined by Investopedia.com (bold mine) 

A scheme that attempts to boost the price of a stock through recommendations based on false, misleading or greatly exaggerated statements. The perpetrators of this scheme, who already have an established position in the company's stock, sell their positions after the hype has led to a higher share price. 

Considering that today’s activities has shown net foreign buying of a hefty Php 2 billion, then dumpers must be from the locals.

Perhaps the index managers have been merely reloading their ammos for another day.

But the above images hardly reveals that this has been about 'confidence', but rather of a market that has incredibly been RIGGED!!! The stock markets has been transformed into a loaded casino! And the PSE blindly cheers on it!

And another thing…if one can’t back up rationalizing current activities then use external activities to support a claim. 

Oh by the way, the peso closed down at 44.8…hardly a sign of confidence. 

When Graham-Dodd’s ominous words of the new era theory (as explained last night)—“The results of such a doctrine could not fail to be tragic”—becomes a reality, I wonder what THE rationalization will be?

But here is a guess; the Keynes’ sound banker rule will come into play: “A sound banker, alas, is not one who foresees danger and avoids it, but one who, when he is ruined, is ruined in a conventional way along with his fellows, so that no one can really blame him” 

Nice.