Technical Insider

DJIA +200 pts Sold all of BDO at 53 Sold all of MER at 83.5 and some odd lots at 83 PSEi testing resistance at 3299, possible break of resistance MER higher high and higher low, among most active WEB higher high and higher low, among most active, possible huge volume BDO testing support at 52.5 News from citiseconline: 1. The Philippine economy grew 7.4% in 4Q07, at the upper end of the government’s forecast of 6.7% to 7.8% growth for the said period. This brought full year GDP growth to 7.3%, also at the upper range of the government’s target of 6.9% to 7.3%. The full year figure also beat the 7.0% figure forecast in a Reuters poll. The government said it is maintaining its 2008 growth target of 6.3% to 7.0% despite the expected slowdown in the United States. 2. The BSP cuts its overnight borrowing rate by 25bps to 5%. The BSP also decided to keep the wider availability of special deposit accounts, with rates aligned with the overnight rate. www.citiseconline.com

Fed cuts interest rates by 50 basis points MWC among top gainers, among most active EDC among top gainers, among most active MBT among top losers, among most active BPI among top losers, among most active GEO among top losers, among most active MER still among most active Monetary Board Cuts Policy Rates by 25 Basis Points 01.31.2008 The Monetary Board decided today to reduce by 25 basis points the BSP’s key policy interest rates to 5 percent for the overnight borrowing or reverse repurchase (RRP) facility and 7 percent for the overnight lending or repurchase (RP) facility. The interest rates on term RRPs, RPs, and special deposit accounts were also reduced accordingly. This is the fourth consecutive reduction in policy rates since October 2007. In its assessment of macroeconomic conditions, the Monetary Board noted that the latest inflation forecasts indicate that inflation would fall within the 4.0 percent + 1 percentage point target range in 2008 and the 3.5 + 1 percentage point t...

DJIA = 12,442.83 () DJIA formed a white candle or is it a doji with higher high and higher low. Volume continues to increase. Fed cut rates by 50 basis points. Interest rates now at 3.0%. I'm not sure if this is below the inflation rate. DJIA had a wild ride. It surged up right after the Fed decision but moved back near its open, most likely due to profit taking and general bearish sentiment. I think the consensus is that since the cut in rates has been expected by the market it is already factored into the price of DJIA. DJIA continue to form higher lows. It might be confirming that DJIA may still be bullishly rallying or might even be trending up (hopefully). I do hope DJIA continue to form higher lows. Good luck to all traders!

WEB = 0.04 WEB weekly formed a white candle with lower high and lower low. WEB weekly seems to have formed a piercing pattern. This reversal pattern will be confirmed if WEB weekly manages to form higher lows in the coming trading weeks. I hope it does. Good luck to all WEB traders!

SM = 297.5 SM weekly formed a white candle with lower high and lower low. SM weekly seems to have formed a bullish hammer. This reversal pattern will be confirmed if SM manages to form higher lows in the coming trading weeks. I hope it does. Good luck to all SM traders!

SECB = 70 SECB weekly formed a white candle with lower low and lower high. SECB weekly seems to have formed a bullish hammer. The reversal candlestick pattern would be confirmed if SECB weekly manages to form higher lows in the succeeding trading weeks. I hope it does :) Note: March and June 2007, SECB respected the formation of the bullish hammer and reversed the prior trend. I hope SECB again respects the formation of the bullish hammer. SECB weekly seems to have formed support level at 68. I hope it continues to respect that support level.

NRCP weekly formed a black candle with lower high and lower low. NRCP weekly seems to have formed a bullish hammer. This reversal pattern would be confirmed by NRCP if it manages to form higher lows in the succeeding weeks. Note: June 2007, NRCP weekly respected the bullish hammer formed and NRCP weekly was able to achieve a new all time high following the said reversal pattern. I hope NRCP weekly again respects the bullish hammer reversal :) Good luck to all NRCP traders!

MEG weekly formed a white candle with lower low and lower high. MEG weekly seems to have formed a bullish hammer. This reversal pattern will be confirmed if MEG weekly manages to form higher lows for the succeeding weeks. I hope it does :) note: on March 2007, MEG weekly shows previous respect to formation of bullish hammer I hope that MEG again respects the formation of the bullish hammer :) Good luck to all MEG traders!

GEO weekly formed a black candle or doji with lower low and lower high. GEO weekly seems to have formed a bullish hammer. This reversal pattern will be confirmed if GEO weekly forms higher lows in the succeeding weeks. I hope it does :) Or is this a doji? In any case it can be considered a bottom formation where the market sentiment or rather the downward uncertainty has been measured by the long lower shadow, this also tested support levels. It is in my humble opinion that after that test the bulls returned to GEO and tried to close the week near its open, which might clearly have bullish implications. Good luck to all GEO traders!

AT weekly formed a black candle with lower low and lower high. AT weekly seems to have formed a bullish hammer. This reversal pattern will be confirmed if AT weekly manages to form higher lows in the succeeding weeks. I hope it does :) Godd luck to all AT traders!

DIZ formed a white candle with lower high and lower low. DIZ seems to have formed a bullish hammer. This hammer will be confirmed if DIZ manages to form higher lows in the coming weeks. I hope it does :) Good luck to all DIZ traders!

TEL weekly formed a black candle with lower high and lower low. TEL weekly seems to have formed a bullish hammer. This hammer will be confirmed if TEL forms higher lows in the coming weeks. I hope it does :) Good luck to all TEL traders!

PSEi weekly formed a white candle with lower low and lower high. PSEi weekly seems to have formed a reversal pattern: bullish hammer. The bullish hammer will be confirmed if PSEi forms higher lows and higher highs. Good luck to all traders!

DJIA weekly formed a white candle with lower low and lower high. Volume decreasing. It would have been a better indicator for the bulls if DJIA formed a piercing pattern rather than a thrusting pattern. Piercing pattern - akin to the bullish engulfing pattern; the bullish piercing pattern only pierces the prior black body; an ideal piercing pattern will have a white real body which pushes more than halfway into the prior session's black real body. Thrusting pattern - a white candle that failed to to close above the middle of the prior black real body. Remember the concept: White candlestick should push more than halfway into the black candlestick's real body to send a bottom reversal signal. I hope DJIA forms higher lows and higher highs following this thrusting pattern... Careful traders...

DJIA = 12,207.17 ( -1.38% ) DJIA formed a black candle with higher high and lower low. Volume increasing. DJIA seems to have formed a reversal candlestick pattern: a bearish engulfing. It will be confirmed if DJIA continues to form lower lows. Looks like there is resistance at the 12,600 level. Careful traders...