Before
I present to you today’s shocking pump and dump let me first
elaborate on what I said yesterday as
And
each ‘correction’ has been met by even more vicious and or
violent buying! And correction can’t seem to even happen within the
day!
Following
Brexit, global stocks suffered a meltdown which climaxed on
Friday June 24th where US stocks slumped by over 3%.
The
initial reaction of Philippine stocks was to intuitively echo on Wall
Street’s fall. The PSEi dumped 1.8% at the opening bell.
As
regional markets were bloodied, some local entities decided that
losses would not be permitted for Philippine stocks. So a series of
pumping took hold.
Why
would a rational investor engage in panic buying when they can buy at
more reasonable prices, especially under a risk off circumstance?
Who
would initiate a series of violent pumping actions if not in
anticipation of immediate price increases? Or if not to fix the
market? And if the former, then why should a price surge happen at
all? Somebody found the fountain of youth?
And
we are not talking of one or two stocks; we
are talking about the headline index.
And
for the PSEi to respond dramatically means that there had been a
concerted and coordinated buying spree across the majors! That is,
the violent upside move by the PSEi represented an organized or
syndicated set of actions! In short, this was all about the gaming
the index.
So
the PSEi reversed its 1.8% loss to close the lunch recess at all
square.
Then
the “afternoon delight” became operational post lunch break. Not
content with the .63% gain, the price fixing operators ensured that
gains had to be material—so the .5% marking the close! Total gain
of the day 1.13%!
All
in all the Phisix had a fantastic intraday 4.73% swing!
And
note that extraordinary fluctuation came with only Php
6.8 billion inclusive of block trade!
Whoever
did these wanted to make a statement: the PSEi is INDOMITABLE!!! (for
whatever reasons)
Then
came yesterday’s
intense 1.72% pumping backed by only Php 7.6 billion of trade!
So
in three days including Tuesday’s -.63% correction, the PSEi
generated a return of 2.2%!
Well,
today was supposed to be another follow through.
Riding
on the coattails of a big rally in Wall Street and the inauguration
of the new administration, the PSEi lunged to a flabbergasting 2.33%
intraday gain at the early session which it held for most of the day!
Market
participants believed that the Phisix had reached a nirvana! And at
such level, it was just a little over one hundred points away from
April 2015’s 8,127.48!
However
things reversed coursed at the close.
Frenzied
pumping turned into frantic dumping!
The
PSEi found itself in down by as much as .38% at the last minute prior
to the market intervention phase. The early 2.33% ramp had all
vanished!
Hoping
to contain the damage and rescue whatever was left of the euphoria,
index managers applied CPR, they used marking the close to push the
index back to just -.03% down!
Overall,
the PSEi had another monumental pendulum swing totaling 5.39%!
This
is no stock market. This is a rigged casino!
All
major indices were down. Yet price fixers used several firms
representing the respective mainstream industries:
Banking:
MBT had a shocking 5.2% marking the close to suddenly end up by .39%!
Yes this means MBT was down by 4.81% and had to be bailed out!
Services:
TEL suddenly soared to close up by 1.9% following a stunning 2.2%
maneuver!
Property:
SMPH also abruptly closed 1.11% from a 2.82% push! Yes SMPH was also
down by 1.71% prior to the close!
And
peso volume was at a hefty 15.36 billion! This means that sellers
suddenly emerged!!!
If
all these represented “part of the prearranged inauguration
backdrop for the new administration” as I said last night then what
happens now?
There
is no such thing as a free lunch.
Since
the post election, specifically May 10, a total of Php 360 billion of
peso turnover (or Php 9.5 billion in 38 days) had been involved in
the pump the PSEi to 7,800.
Who
financed this? And how was such stunning meltup been financed? Have
these been through bank credit?
And
what happens to all those who bought from the top if financed by
credit? If the PSEi falls, will such loans be called upon? Will these
trigger liquidations that would set about an avalanche of selling?
This
seems like déjà vu.
At
the post April’s 2015 record, aside from a wish for 10,000 at the
end of his term, the former president paid a visit to the PSE.
I
pointed at the foreboding
signs of mania in climax (May 3, 2015)
Here
is a trivia, aside from being heads of states of two of the largest
ASEAN nations, what does Philippine President Aquino and Indonesian
President Widodo share in common?
Well
the answer is that both presidents graced their respective stock
markets in April where both indices had been at record highs. In
addition, both political leaders delivered their desired targets for
their respective stock markets during the said occasion.
The
above was actually a follow up on my earlier warning
(April 19, 2015)
I
am reminded of the fateful BW bubble that turned into a scandal. BW’s
preposterous 52x run climaxed with the visit
of Macau’s casino mogul Stanley Ho to the PSE.
This
eventually was followed by the stock’s monumental collapse back to
its origins!
Manipulating
the markets in order to please politicians…will history repeat???
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