EW - sleeper update 2

So our sleeping East West finally took off. Yesterday's candle closed at 15.98 with a high of 16.30. I hope you accumulated this in the 15.24 area, because psychologically, the downturn wouldn't scare you.

We began our vigil for East West here: East West Sleeper Play
And the first update can be found here: EW sleeper update 1

Immediate support should be at 15.35. RSI 30 shows EW attempting to breach 50 but wasn't successful. Expect the stock to go down abit further possibly to the 15.58 which is the 61.8% fibonacci retracement level. Check the image below. (click to enlarge)

Sell or hold, it is up to you. If it begins to go below 15.58, then sell to lock in your profit. Please note that price during the IPO was in the 20 peso level. Congratulations if you've made it this far!

Caveat and God bless your investments!

EW: sleeper update 1

We've seen that East West Bank fluctuate. Fortunately the fluctuations have been mild. Also, because of the $81 million money stolen from Bangladesh, EW was affected due to two of the accused as being former employees of East West Bank (Maia Santos-Dequito, and Allan Penalosa). This likely affected the stocks performance (through market psychology), and potential buyers stayed away.

Here is an article today wherein EW Exec reaffirmed his statement issued during the senate hearing that his bank did not have any transaction linked to any violation of the Anti-Money Laundering Act (AMLA).

You can find the full article here: Don't drag us into your mess, RCBC told 

Let's check EW's chart. (click on the photo to enlarge)

The red mark-down arrow is when the two accused were mentioned as former employees of EW (the day Enrile wanted to cite Deguito in contempt). After that small dive, price action has moved along the upward trend line. 

There was resistance at 15.28, but now it has become support. Move stop loss from 15.02 to 15.14.

For now, refrain from adding into your stock positions. If you can, add this to your watchlist and buy only when 15.40 resistance has been broken (i.e. buy at 15.42 when price action increases with good volume).

We are in no rush. Just sit and wait and follow the trading plan.

Caveat and God bless!

FLI: sleeper update 3

Here are the last posts, in order, about FLI:

• First
• Second
• Last

Our first sleeper pick traded at the close of 1.75, with a high of 1.80. Today's candle shows a long wick which accounts for nearly 25% of the candle. This means that buyers/ bulls tried to drive the price up to 1.8, but there were more sellers at that level and the sellers/ bears drove the price back down to 1.75. (click on photos to enlarge)

Will price go down? Let's look at the stock's history: 

Resistance area closer to recent price:

If you notice on the photo above, I use RSI 30. I feel more comfortable with this setting than RSI 14. I learned this from Spyfrat and how it can be a powerful tool aside from just determining overbought and oversold areas. Here's a link to his blog: Spyfrat's Call

RSI 14 vs RSI 30. It's all a matter of personal preference.

FLI will likely go down tomorrow. Keep an eye on price action while it declines and see if it bounces off of the 23.6%, or 38.2% fibonacci retracement levels.

Retracement to price are as follows:

23.6% retacement = 1.70

38.2% retracement = 1.65 

Or you can use today's low as your stop loss (1.66). If it falls below that, then CUT to preserve profits.

Will write an article for EW soon, so keep an eye out for that, or subscribe to this blog (Its free!) so you can be notified via email once I make a new post. 

Caveat and God bless!

Sleeper Play: East West Bank (EW)

I'm happy to report that FLI is now at 1.69. I'm not too happy about the steep incline and would have preferred it rise gradually. Steep inclines usually means quick exhaustion. You can use EMA 10/20 along with Parabolic SAR and Stochastics to Monitor price movement and lock in profits when you can. Or you can lock in profit already and then buy back after reversal has exhausted.
(click on the photo to enlarge)



I was about to suggest 2GO as our next sleeper play, however it has already surged up. Check the picture below. (click on the photo to enlarge)


Now, let's focus on East West Bank (EW), FLI's banking arm.
Here are the fundamentals as of Sep. 30, 2015 (3Q 2015). They have yet to release their 2015 annual report.


Although net income has slightly declined, the stock is trading near its all-time low. See the monthly chart below. (click on the photo to enlarge)


Below is EW's daily chart. (click on photo to enlarge)


You can do a test buy for now, and add more when price action breaches 61.8% fib level (or 15.79) ala Nicholas Darvas style.

Please note that the company has yet to release its 4th quarter earnings result. Lower earnings might bring the stock lower. Also, the company's Chairman Emeritus, Mr. Andrew L. Gotianun, Sr., recently passed away (rest in peace)...so it might be wise to wait until Tuesday to see how this affects the stock price before doing a spot entry.

Stop loss is set at 15.02. If price action violates this level, then SELL IT IMMEDIATELY.

Caveat and God bless!

FLI: sleeper play update 2 - Breakout!!! Now at 1.63!!!

Our patience is beginning to pay off. We first began our vigil on FLI with this first post on Feb. 18, 2016: FLI: sleeper?

Below is the screen shot when I initiated my buy. (click photo to enlarge)

Here is the next photo from the last update on Feb. 24, 2016: FLI: sleeper update
(click on the photo to enlarge)

And here we are today. (click on the photo to enlarge)

If you didn't listen to my warnings and bought anyway, then congratulations! Hehe!

I usually use EMA 15/30 or EMA 10/20, depending on the stock. Each stock is unique so there isn't a once size that fits all of them.

I also put heavier reliance on RSI versus stochastics due to preference. RSI tends to be more accurate or clear for me when divergences occur.

What now? Monitor the EMAs. If the slower EMA begins to cross over or is crossing over the faster EMA, then sell. Simple as that. If the stock continues to go up, then you might consider adding a few more shares especially if it breaches the 38.2% fibonacci level with strength and volume.

Since this has already broken out, I am now looking for the next "sleeper play".

2GO looks promising.

Caveat and God bless!

EDC, FGEN, and PCOR charts as requested as of March 6, 2016

EDC chart (click photo to enlarge).
please note that color of the text bubbles do not matter. Just forgot to edit the color.

Good time to enter EDC. Ride the wave while the following holds true:

• Shorter EMA line is above Slower EMA line (I use 13 EMA and 48.5 EMA).
• Parabolic SAR is below price movement. 
• RSI and A/D line does not show bearish divergence 

FGEN Chart (click photo to enlarge).

Wait until Shorter EMA crosses over longer EMA to be safe, and ride the wave until price violates Parabolic SAR.

PCOR Chart (click photo to enlarge).

Do not chase the price.

Caveat!

Selecting stocks to Scan: Where to Begin?

One of the more challenging tasks I encountered when I focused more with Technical Analysis was where to begin my scan selections. By the way, if you're looking to learn the basics of Technical Analysis, check out Ms. Guillen Rocher's blog. Her posts about candlesticks, Stochastics, Support and Resistance, and Moving Averages are great! Check them out.

To date, the PSE has 314 stocks to invest in, give or take a few preferred shares. Doing scans over the weekend is fine, however it cuts into my family and relaxation time (I've yet to watch Deadpool so no spoilers please). Also, what about doing scans mid-week such as Wednesday? I have a day job, so I do not have the time to be scanning all 300 stocks listed!

What do we do? We follow the volume. We look at the most actively traded stocks, or those stocks that have significant amount of volume. I use COLFinancial and Utrade as my online brokers, so I can point where you can get this information if you're also using those brokers. If you're using others, explore the website abit. Each broker typically offers this information.

For COLFinancial, you go to Quotes, then Market Information, then Most Active. I marked them with an orange arrow as 1, 2 , 3 respectively. Please refer to the picture below (click on the photo to enlarge).


For UTrade users, click Quotes, then in the drop-down list, click Most Active.
(click on the photo to enlarge)



Once you have this page open, check the column labeled as Volume. This is the number of shares traded throughout the day. In this case,traded on Feb. 26, 2016. You will want to focus on stocks that have had 1 million traded volume or more.

Based on the above information, we take a quick peek at MPI and see if a trading setup is present.


If a setup is present, note it down for further study later then move on to the next stock on the Most Active list meeting our volume criteria.

Another useful area is the Gainers and Losers tab in COLFinancial. (click on the photo to enlarge)


This tab shows a list of stocks that have had the most significant increase or decrease to their prices on a previous trading day (or during the day itself).

For UTrade users, it is still under the Quotes tab, and right under the Most Active line. I encircled it in orange below. (click on the photo to enlarge).


Instead of Volume, we base our selections on the Value column. The numbers under value are derived by multiplying the total number of shares traded, at the price traded, and getting the sum of those prices (tama ba? hehe).

During a trading day, I often have Gainers and Losers and the Most Active tabs open at a new window or in a new tab (alt + tab is your friend) so I can quickly cycle through my web browsers. This is so I can quickly see if a stock is rising during the trading day, and if a breakout should occur, I can quickly enter when it breaks a resistance line....but thats for another article.

So, when I come home from work, this is how I do my scans. Hope this article will help reduce your scanning time and God bless your investments!