As I have been saying here, rising stocks have become an entitlement. Combine such overweening outlook with the one way trade sentiment and the lingering trauma (PSTD) from the previous episodes of crashes; the mechanical response has been to savagely bid up the headline index after each account of corrections.
Three days of actions has only confirmed on my viewpoint
Monday’s (-.55%) correction had to be neutralized by Tuesday’s furious pumping (+.62%). And Wednesday’s +.2% was a consequence of a largely marginally down day which had been reversed by another spectacular last minute pump. Corrections are not allowed even during intraday sessions!
And in ALL three days, we see “marking the closes” or price fixing actions as determining the outcome of the headline index.
To repeat, you see nothing close to this in terms of the degree of manipulation in any part of the world. Not even in Japan or in China where stock market interventions function as an official policy. Price fixing was hardly an issue in the run up to May 2013 7,400 record.
Aside from the above, yesterday, I sent a note on the deepening degree of ballistic price movements or actions that has resonated with BW and SSO bubbles.
Yesterday’s modest headline gains effectively masked the awesome intensifying blowoff phases in various issues
AEV continues with its BW moves which has only picked up steam.
SM once again set a fresh record from a renewed parabolic surge.
Note: none of the two had such degree of vertical movements over the past 3 years. Yes that’s even during 8,127.48 in April 10, 2015!
AC has been in the same process, it hit a new record yesterday again from frantic bids that has sent its stock vertical.
RLC was yesterday’s newcomer. RLC has lifted past the old highs via vertically based pumps
I was in Robinsons Galleria last Monday. Interestingly outside the renovations in some declared sections (fastfood and the Ortigas exit or part of the West Wing particularly the 2nd and 3rd floor or the sports section), vacancies have mushroomed even at the prime areas!
Soaring stock prices amidst rising vacancies—yes what stunning contradictions!
Also GTCAP broke out of its 2015 high via a manic pump
During the new millennium, BW and SSO were separate and isolated stock specific bubbles which eventually blew up.
In 2016, 10 PSEi issues hit a record high this year via BW-SSO price actions. 7 posted new highs last Friday. Five of the seven served up on such parabolic streak yesterday. 14 of the top 15 issues also has seen vertical price actions. The difference is that the others have yet to reach fresh records. They are laggards doing a catch up.
In short, while BW and SSO were isolated stock specific bubbles of their era, in 2016 the headline index or the PSEi itself represents a systemic bubble based on the collective actions of its composite members
That’s why history is unfolding, right here, right now. Explosive moves, if history rhymes, will will end with a grand implosion!
Remember all these have been happening even as the PSEi remains at 8,050 or BELOW April 2015’s high!
You see for the crowd, this time is different.
And “this time is different” according to the legendary guru the late Sir John Templeton represents the four most dangerous words of investing.
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