Lots of Gap ups today:)  

Posted by Book Eater

I want to share this quote to anyone who reads this post, just got it from an email.

"Risk is involved but inaction is likely the biggest risk"

It's the best advice I can give to those who are trading the markets in the Philippines today. Well, any markets perhaps. You can also relate it to some other thing in your life but let's concern ourselves to trading for now.

Trade Idea #1 : GLO - BUY! Closed at 1640 awhile ago.

Okay, RSI,MACD, Good break of resistance at 1600. GLO is really going to go higher. My estimate is at 1750.
The only reason why I failed to buy this awhile ago...was the volume was not there UNTIL 5 minutes before the close. Look at that! Broker CLSA and UBS had a cross sell of 100,000 shares just at the last 5 minutes. Talk about insider information or what? Well, for whatever purposes. All the trading signals a technician would like is there. Volume came and that's the important thing. This is a BREAKOUT!!!

Near Term Catalysts:
GLO announced a 37.50 cash dividend for holders until Feb 18,2008. Also, net income was at P 13.3 Bil , an increase of double digits percents. Cant remember exact figures. This was just released today at around 4:20pm.

I hope tomorrow I can still buy this without very big gap ups.

My tradeplan
1.) Buy as long as until 1680. (Well sometimes plans like that don't work. But my plan to exit is 1750 which I think will happen in around 2 days?)

Trade Idea #2 : EEI - Buy! Closed at 2.85 awhile ago.

Okay, for those who are latecomers. Sorry but this is the reason why you have to make your own decisions with the markets. I even bought this mejo late na rin at 2.85. This is great. All signals are there. Incredible volume, closed at the high, MACD going up, RSI still near oversold levels. This has a lot of room to go up.

My exit plan?
1.) Well, initially they say the Target Price is 3.20. I think that's coz they see the resistance there. 3.20's good enough for me. That's about 12.2% upside from 2.85, if proven right.

Some disclosures:
I'm holding
1.) AP @ 5.1 - just bought awhile ago. I think volume's there and it's breaking out of the boxed consolidation.
2.) EEI@ 2.85
3.) FPH @ 52 - bought last Friday because of significant volume, will pyramid trade this..and buy more at good pullbacks. Good technical signs.
4.) GEO@ 1.24 - personally , i reduced some of my holdings (half) awhile ago because it seems like GEO's not acting normal. Some of my shares which were bought at 1.22 previously, sinell ko rin ng 1 fluct up lang. It's trading at very tight congestion areas. My tradeplan is to buy GEO at pullbacks..so i dont want anyone to join me here. I just like trading GEO. Trade on your own caution.
5.) PIP -@ 3.10? - ok, this is a losing proposition but this is my first ever long term investment which wont be for long. If I can sell my shares at 3.15 or at 3.10, I will exit this one. If not, hay... ayokong magpaipit but ididividend yield play ko na lang.


- Nix

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