Operation Defend the Maginot Line PSEi 8,000

To repeat, history is in the making, not because of the headline index, but because of extent of grotesque valuations reached, the intensive mispricing, the sheer degree of recklessness as expressed by vertical prices, the total evisceration of risks, the extreme or lopsided scale of misperceptions which are basically manifestations of hardened convictions of a one way street or the delusional attainment of paradise, and importantly, the massive and brazen manipulations of stock prices and stock price index.

More evidence of the said dynamic unfolding in today’s and yesterday’s session 

I also noted last weekend

8,100 has not only been the magical number, PSEi 8,000 has also served as the bull’s “Maginot Line”—a line that must be held again at all costs…

Thereby each case of price weakening/ profit taking has been followed by a massive engineered price spikes—mostly channeled through post lunch afternoon delight and or marking the close sessions.

 

Bulls and the market manipulators were apparently caught by a surprise selldown yesterday, August 3 .

So aside from a small late afternoon delight pump, price fixers engaged in a minor “mark the close” to mitigate the day’s losses to just 1.86% from about the trough of around 2.33%. (right)

Today August 4. Following a strong start which subsided by lunch break, the PSEi saw a late afternoon-delight pump which climaxed with another stupendous mark the close. The end session pump contributed to an amazing 34% of the day’s 1.14% surge!

Remember, Operation Maginot Line 8,000 means that 8,000 MUST be defended at ALL cost! And to attain this means that NO profit taking allowed. That's because profit taking might bring about a crash which has traumatized the consensus.

And where profit taking occurs, such will be countered with a well-coordinated and synchronized frenzied-vertical pump. This means that the PSEi can only go up! A one direction trade!

Understand again that the headline index, which constitutes 30 member firms, cannot just move up without several big market cap issues being pushed simultaneously or concertedly.

 

So here are the biggest contributors to the last minute or marking the close pump. The above is aside from intraday pumps mostly in the afternoon.

Moreover, last Monday I also wrote:

By tomorrow, TEL’s losses would have been forgotten. And because losses are not to be allowed, violent pumping will be the mechanical response.

 

Bullseye again.

Because PLDT has been BIGGEST drag to the grand ambitions to break April 2015 record, it MUST pushed up regardless of fundamentals.  

So the -33% decline in profit growth in 2Q 2016, which represents as an extension to 2015’s 35.34% eps growth crash, equals a 4.56% PUMP today!

More proof how prices have totally decoupled with reality!

This only reaffirms why milestone event-process, which seems to be a fusion of 1997 (ultra high levels of valuations) and 2007 (vertical pumping), is happening right here, right now.