Weekly Review: Fear Takes Over

The week was doing great until the DOJ decided to rekindle the smuggling issue with PNX, creating a selling frenzy, causing the stock to touch its lowest intra-day this year at Php8.5/share, and closed this week at Php8.9/share. Paper gains were wiped out! The Mokong struggled to unload positions in an attempt to at the very least, end break-even. PNX was sold from Php9.6sh to 9.7sh/share. With the stress of the PNX sell down, the Mokong decided to take some profits in PF. Most of the trades this week were heavily influenced by fear, shifting the Mokong's stand to be more conservative.

MCP

MCP gapped down after the disclosure that a huge sale of MCP shares was priced at Php14/share ("transaction price"). Also included in the disclosure was a provision for price stabilization. Since MCP was still trading below the transaction price the next day, the Mokong saw this as an opportunity: bought shares below the transaction price, then sold it as price stabilization kicked-in. One may wonder if the Mokong exited early as prices usually slowly appreciate above the transaction price. The early exit, however, was on the fear that MCP is already incurring rental fees to BEL, way ahead the start of their casino operations.

BLOOM

BLOOM's downtrend for two months may have reached its bottom: both RSI and STS are within oversold levels and are showing signs of recovery. The Mokong bought some BLOOM shares in anticipation of a possible "dead cat bounce". Near term resistance is at Php13/share.

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HI

Banking on EEI's sentiment, the Mokong bought HI after EEI broke the Php13.9/share resistance last Thursday. This morning, EEI continued its rally breaking the Php14/share. Some took notice, and they started to push HI above Php8.0/share. However, as the day progressed, EEI was losing steam. The Mokong, fearing that his paper gains would be wiped out, sold a portion of its position in HI. Half of it would be sold should EEI rally next week.

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SM
The Mokong added positions in SM after learning from the PMT chatroom that dividends were approved during their Annual Stockholders Meeting. However, the market snobbed the disclosure the following day, causing the Mokong to lighten his position on the fear that SM may prolong its sideways movement.

RCB

The Mokong sold RCB today. A trade influenced by being pissed off with PNX. Looking back, the Mokong feels regret.