Stock Analysis 10/28

The positive sentiment keeps on coming. Dow surged by almost 340 points because of the European debt. The push was caused by the deal crafted by European leaders to slash Greece's debt load and to prevent the crisis from engulfing other larger economies such as Italy with the aim of preventing another financial collapse like the one that happened in 2008 after the sinking of Lehman Brothers.

What's in store for us today? PHISIX may significantly surge. We may see several stocks that may gap up. So here's some options.

1.) Sell on the initial rally and buy back during the retracement

2.) Just hold on to your positions as this may continue next week

3.) Sell on the rally and stay liquid

My take would be a combination of 1 and 2. Sell on the initial rally, buy back on the retracement, and hold the position for next week. There are some developments on the European debt crisis which, in my opinion, will continue next week. There is some serious positive sentiment over the weekend and the momentum of most stocks are so strong.

Stocks to look out for:

ZHI - ZHI closed at its high yesterday and may easily breach P1 today. ZHI's price action might be prompted by its ASM on Nov. 16.

Sleeper stocks - If we noticed yesterday, sleeper stocks such as ZHI and BHI went up. ZHI continued to do so until the market closed but BHI's momentum waned. However, despite the weak momentum, BHI showed some signs. After ZHI, BHI may follow as well as other stocks such as WPI and LIHC. Just keep an eye on this stocks.

GEO - GEO is starting to get back up slowly but surely. It may finally break away from the 0.56 levels and break past 0.6 today.

Blue chips - Some blues that gained some attention are DMC, ALI, and MEG. These stocks traded with high volume and with Dow's high surge, these stocks are expected to rise

TEL  and DGTL - For traders, DGTL is a more viable option because it is way cheaper than TEL. TEL on the other hand, a PSE heavyweight, can determine and influence the movement of our index and economy. Both TEL and DGTL are good for short term plays.

NI - More investments are coming to NI. Expect NI to do so good today and next week.

*Gold went down by more than 11 points and it has shown some weakness. Maybe its good to start get ridding of mining stocks because, other than gold, other metals are going down as well.

However, despite the very positive sentiment, the possibility of PHISIX taking a dip is quite high. There is a long weekend coming. Traders may clear their positions out.