In this article, I’ll tell you the Market Sentiment Index rating for the following bluechip or index stocks for the entire month of August 2022.
- Aboitiz Power Corporation
- BDO Unibank
- Bank of the Philippine Islands
- Converge Information and Communications Technology Solutions
- Emperador
Before we dive deep into the data, I need to tell you first the rationale for using my Market Sentiment Index. This is my proprietary indicator. I invented it. No one else can explain it better than I do.
Why did I create my proprietary Market Sentiment Index indicator?
I am using my proprietary Market Sentiment Index (MSI) to identify the overall mood of the top 10 brokers.
I want you to understand that my Market Sentiment Index is not a determiner of trend but sentiment.
I use this chart on several occasions. Here are some examples of its usage.
Scenario 1
Let’s say the stock is still moving above your trailing stop loss. All other indicators you check are bullish.
You want to top up, but you saw a huge Net Foreign Selling. Now you’re half-hearted to continue your plan to top up even though your other indicators are bullish just because you saw that the foreign fundies are bearish.
However, you saw that the Market Sentiment Index of the stock is bullish. That means the majority of the top 10 brokers bought the dips.
Doesn’t that give you the confidence to top up, too?
Scenario 2
Let’s say the stock is still trading above your trailing stop loss. However, the other indicators you monitor are bearish.
Now, you’re torn between pre-empting your trailing stop loss (selling even before it gets hit) and respecting it (sell only when it’s hit).
However, you see that the Market Sentiment Index is bullish.
Doesn’t that give you the confidence to hold your position because you see that the majority of the top 10 brokers are still interested in buying the dips?
Scenario 3
The stock is still trading above your trailing stop loss.
You see that the foreign investors registered a huge Net Foreign Buying.
Now, you’re asking yourself, “Does it make sense for me to top up (buy the dips) because the foreign investors are aggressively buying the dips EVEN IF the current price is not higher than the previous trading day’s opening price?”
But seeing that the Market Sentiment Index is bearish, you decided not to pursue the plan to mimic what the foreign fundies are doing.
You realize that the foreign fundies can afford to buy the major dips because they have billions in their pocket.
You realized, “Why should I hurry in buying the dips when the majority of the top 10 brokers are not even showing signs of interest yet?”
Now you’re ready to see the Market Sentiment Index rating for the stocks I mentioned above!
Aboitiz Power Corporation
Market Sentiment Index: BULLISH
43 of the 81 participating brokers, or 53.09% of all participants, registered a positive Net Amount
32 of the 81 participating brokers, or 39.51% of all participants, registered a higher Buying Average than Selling Average
81 Participating Brokers’ Buying Average: ₱31.74080
81 Participating Brokers’ Selling Average: ₱31.97975
11 out of 81 participants, or 13.58% of all participants, registered a 100% BUYING activity
11 out of 81 participants, or 13.58% of all participants, registered a 100% SELLING activity
BDO Unibank
Market Sentiment Index: BEARISH
23 of the 102 participating brokers, or 22.55% of all participants, registered a positive Net Amount
10 of the 102 participating brokers, or 9.80% of all participants, registered a higher Buying Average than Selling Average
102 Participating Brokers’ Buying Average: ₱116.98914
102 Participating Brokers’ Selling Average: ₱123.34407
2 out of 102 participants, or 1.96% of all participants, registered a 100% BUYING activity
7 out of 102 participants, or 6.86% of all participants, registered a 100% SELLING activity
Bank of the Philippine Islands
Market Sentiment Index: BULLISH
26 of the 86 participating brokers, or 30.23% of all participants, registered a positive Net Amount
26 of the 86 participating brokers, or 30.23% of all participants, registered a higher Buying Average than Selling Average
86 Participating Brokers’ Buying Average: ₱94.24782
86 Participating Brokers’ Selling Average: ₱94.59469
5 out of 86 participants, or 5.81% of all participants, registered a 100% BUYING activity
20 out of 86 participants, or 23.26% of all participants, registered a 100% SELLING activity
Converge Information and Communications Technology Solutions
Market Sentiment Index: BULLISH
74 of the 112 participating brokers, or 66.07% of all participants, registered a positive Net Amount
44 of the 112 participating brokers, or 39.29% of all participants, registered a higher Buying Average than Selling Average
112 Participating Brokers’ Buying Average: ₱19.05343
112 Participating Brokers’ Selling Average: ₱19.42895
12 out of 112 participants, or 10.71% of all participants, registered a 100% BUYING activity
1 out of 112 participants, or 0.89% of all participants, registered a 100% SELLING activity
Emperador
Market Sentiment Index: BULLISH
34 of the 71 participating brokers, or 47.89% of all participants, registered a positive Net Amount
29 of the 71 participating brokers, or 40.85% of all participants, registered a higher Buying Average than Selling Average
71 Participating Brokers’ Buying Average: ₱20.00281
71 Participating Brokers’ Selling Average: ₱20.03829
5 out of 71 participants, or 7.04% of all participants, registered a 100% BUYING activity
15 out of 71 participants, or 21.13% of all participants, registered a 100% SELLING activity
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