One After Another

Seems like we just can't stop getting one bad news after another. My heart goes out to the victims of the quake and tsunami in Japan. The Nikkei has plummeted dropping 6 percent of its value Monday and losing another 6 at the first hour of trading for Tuesday. Insurers are now saying that this may be the costliest natural disaster in history; and in an advanced economy such as Japan, I have no doubt that that may be the case. What makes it worse; is how local prankster seem to be getting a kick out of sowing panic with stories of radiation leaks, panic that has led to the closure of PUP campuses yesterday.

Recently, our market has been benefiting from an increase in net foreign buying. Foreigners have started showing interest in companies that have started becoming quite cheap, valuation wise. This has led to the market zooming past the 3900 mark quite easily and I believe we have started to form a new support level there, this may be a sign for us to start accumulating. I have done so by bottom fishing stocks like DMC, EDC, AP, NIKL, and AT.

First metro recently came out with a special report that mentions how the selling seems to have started to slowly bottom out and that we should see a resurgence in the bull market. Mr. Gus Cosio, mentioned in his new blow (www.guscosio.com) that the market may see itself through the 4200 level by the end or march. I wouldn't be one to be that particularly optimistic, but I do think accumulation would be a good theme for this month.

Corporate earnings have come out, showing that most of my favorite stocks have reported double digit growth numbers with DMC, MBT, SCC leading the way. I made a pretty regretful mistake by selling off quite a large position of SCC, while I switched positions to NIKL and EDC. I have also recently taken quite an interest in ICT, I hope to come out with a more detailed entry on the stock when I've completed research on the company.