Up by only .17% for the week, the Sy-dominated main equity benchmark logged in their biggest three-week advance of 16.92% since at least 2006!
How this record took place?
Answer: By massive Marking the Close pumps!
The two-day pumps, which totaled for 2.5%, eventually rescued the overbought index from a correction.
Another record was set last week.
For 10-straight days, advancers swept decliners to accumulate a winning margin of 218 from May 7 to May 20, 2008.
The 10-day sweep in favor of advancing issues occurred again in 2020, from May 27 to June 6. But this time, the margin swelled to 546, or more than double the previous!
The 10-day winning streak that occurred in 2008 had signified a short-term bear market rally.
The desperation to keep the index elevated and the degree of volatility of price actions suggest the same relief rally.
Main Board peso volume appears to have hit a wall. If so, pressures to profit-taking will likely overwhelm the index manipulators. Nevertheless, instead of a sudden broad-based decline, perhaps there could be a rotation to the second and third liners (the typical cycle).
What could drive the hunt for yields from short-term punts? Cash from banks. The BSP's latest infusions to bailout the banks may have incited this record three-week run. (chart above covered the month of April)
The V-Rally/recovery, according to Hedgeeye.
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