Philippine Stock Market tumbles this day after flashing all the news regarding the failures of PCOS machines on dry-run yesterday. Philippine national election is just a days ahead, and failure on automation is highly speculated. It results to a bloody day of our sleepy market, foreign buyer and other giant financial institutions started to run their funds and just might return after all the situation is settled then.

Most technical traders will be out in our local market until Friday this week; rally on bargain sell is now expected.

If our first automated national elections will fail and turn chaos, those who are still holding their shares will be the one to bring this market down, but if in God’s will, it turns out to be peaceful, those holders will be the first to reap profits and to those who already sold their shares will be the one to push the price higher.

On the on the hand, for the fundamentalist investor,
now is the best time to buy

Better to twist it with little technical knowledge, checking on chart for bottom-fishing-buying stocks. "Bottom fishing" is to find and buy a best stock position as per your analysis through charting, looking when or how much should the price entry. A good example is Manila Electric Company (MER), where price return to 167.0 per share. Base from its history, this would be the fourth times it touches the support value, whereas price ranged at 160.0~170.0 per share. And there are more companies in this same boat we could catch at the exchange for this week, monitor their MACD and RSI chart for better references.

Take note, that lately our government raises its growth forecast on country's economic output or GDP for next 2011 will be on 3.8% to 4.8% as consumer demands, overseas remittance, and more trade surges along with our neighbor countries’ economic recovery. These recent growths of figures are strong indications that after election our market will be set.

   Market Closed
   As of WED MAY 05, 2010 12:10:00 PM
 PSEi    3,176.85    113.83    3.4592   
 All Shares    1,980.92    57.65    2.828   
 Financials    662.98    25.31    3.6772   
 Industrial    4,888.22    190.12    3.7437   
 Holding Firms    2,008.91    96.55    4.5857   
 Property    1,174.03    44.47    3.6496   
 Services    1,472.63    30.54    2.0317   
 Mining & Oil    8,589.36    318.94    3.5803   

Data source : Philippine Stock Exchange

If we do believed that stock market is really a risky business, well true enough then, but isn't now the right time to place our bet?

Lately, I received also quires, "what to do on this scenario?" - Honestly, it's all depend on us. We should consider our goal target (short-term or long-term), risk tolerance and financial liquidity. Every stock trader or investor has a unique view or principles on mind setting that reflect on their portfolio. Below are most likely options we have now;

1. Sell now or cut-loss to avoid further more losses on your portfolio.
2. Buy more to average losses.
3. Hold and forget it, just like that. It's very effective way to have peace if your purposely bought this shares for long term investment.

Don't forget to consider also your health, placing yourself on to much pressure can commonly cause lot of unexplainable internal disorders.