Mr. Market is Bullish!

Stock	Buy Below	Current Price	Target Price	Average Cost	Return
BDO	60.00	61.25	81.00	60.10	1.91%
ALI	18.00	23.30	22.50	-	-
PGOLD	24.00	30.10	30.00	-	-
EDC	6.00	6.10	8.50	5.94	2.69%
TEL	2,400.00	2,8,70	3,000.00	-	-
AGI	11.00	12.94	15.00	-	-
MBT	94.00	93.75	105.00	94.03	(.30%)

Last Friday, the stocks I was able to buy below the above table are in greenJ. Sweet! I also included MBT in my portfolio with a target price of 105.

Mr. Market is Bullish!

Did you see the index yesterday? It increased by 1.56%! Wow, the bulls had just a party yesterday as they gobbled up shares in the market. All sectors are in green and they were all affected by the contagion brought about by QE3. Thursday night was the day when the FED announced that they will buy $40B a month of bonds from financial institutions indefinitely!  The key word here is indefinitely which means that the FED will buy $40B bonds every month until the labor market in the US improves substantially. Aside from this, the interest rate will be zero until at least 2015. This is bullish for stocks because the bondholders will have cash for buying other asset class including gold and stocks. I know every stockholder must be jumping up and down now as they will view the succeeding months with optimism.

Value of shares traded is P6.6B. Foreigners have a net buying of P937 today.

Notable gainers are ALI-4.02%,PX-3.27%,JFC-2.84%,GLO-2.65%,TEL-2.57%,BDO-2.51% while the only decliner is BEL-1.03%. AEV, MBT and URC stayed flat.

BDO- the foreigners net bought P133M. They are back, at least last Friday!

An insider disposed 5,000 shares at 59.15 per share. MACD and DMI technical chart signals a buy. RSI also pointing upwards. This stock is bullish right? Initial target price based on the technicals is 68.

ALI- the foreigners net bought P196M. Whew! It increased by an astounding 4.02% today!

May we ever see ALI go below 20 before the year ends? Geeesh, this stock continues to be expensive.

By the way, ALI just dropped its plan for a P6B development project in Negros Occidental due to delays and legal disputes that threatens its implementation.¹

PGOLD- the foreigners net bought P4.4M. It officially broke the 30 per share price last Friday after a few failed attempts to break it.

EDC- the foreigners net bought P5M. As predicted in our previous blog, the increasing trades from 5.85 TO 5.88 shows signs of bullishness for this stock. Target price based on technicals is 6.27.

Social responsibility – EDC entered into an agreement with the DOE to adopt six wildlife endangered species found near its several geothermal sites nationwide². Any corporation should have social responsibility.

TEL - the foreigners net bought P332M! In the previous blog, I was telling that TEL just reached the 2,800 per share price but guess what today it hit 2,900 per share although it closed at 2,870per share.

Technicals indicate a breakout. Whether this breakout is a trap or not will be confirmed next tomorrow. See the volume? Based on the distribution theory, an accumulation is happening.

Shall I buy? MBT is still within my buy below price.

AGI – the foreigners net bought this stock with P119M.

After 2 days of being in red, I thought it will be a downward reversal for AGI but the bulls took over and bounced back strong last Thursday and Friday.

MBT - the foreigners still net sold this stock with P62M. I am applying the contrarian view here as some analysts view this stock as underweight.

Source: pse.com.ph Sep 14 trading activity, COL data

¹http://www.bworldonline.com/content.php?section=Corporate&title=Ayala-drops-Negros-project&id=58503

²http://gulfnews.com/news/world/philippines/six-endangered-wildlife-species-to-get-special-protection-1.1061862

Note: This is not a solicitation to buy. Buy at your own risk.