breaking the index's fall

"Be greedy when everyone is fearful, be fearful when everyone is greedy?" -Warren Buffet

When will our market's main index break its medium term downtrend and find that foothold? With such bright and sunny skies over our local private sector, why are we so fearul?

News...what news?
All the good corporate news last week was not sufficient to have any significant upward impact on our market. On the contrary, we saw incredibly thin trading last week for successive trade days. The gloom and doom that has taken over global markets seems to scream louder than our local news of continuously increasing corporate profits.

Technical Opinions
Tsupitero says the level to watch out for is 3170. Any break below this points to only one of two things, a retest of the previous low of 2950 or worse, the establishment of a newer low.

Other technicals are telling investors to watch for a successful retest of the last support level, which I'm assuming to be 3170. Support retest seems to be the buzzword now among technical analysts.

Fundamental absence or fundamental failure
I seem to find very little fundamental analysis on our local market. I think its because, we find ourselves in a paradoxical situation. We have good fundamentals but a tumbling market. There is just so much good news on the local front, as far as the private sector is concerned, that we can say we are in an excellent position as far as fundamentals are concerned. Yet, our market keeps tumbling.


Misplaced fears
Ultimately, I think that the fear going around our market is misplaced and we will realize that very soon. When our attention returns to things like our growing GDP, better fiscal position, increasing corporate profits, we will realize that there's more value than what meets the eye in Philippine Stocks.