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Sunday, 9 February 2014

SM Investments Corp: 9 February 2014, Sunday, 9.45pm Singapore Time

SM Investments Corp: 9 February 2014, Sunday, 9.45pm Singapore Time
Chart courtesy of Chartnexus.com

Attached above is the Technical Analysis of SM Investments Corp (Philippines Heavyweight). 

The chart does look slightly complicated and messy due to the technical structure formed.

+ Major distribution of this stock took place towards end of 2012 using break up of the orange band of resistance to induce greed in the Philippines.
+ 2013 was also used as further distribution and the distribution spanned over a mid-long term timeframe.
+ The longer timeframe could be due to: 
+ 1. this stock being a blue chip quality stock, and 
+ 2. it is not easy to distribute this stock for its costly price.
+ 3. there are many Philippines Institutional Buyers or Brokerage Houses buying this stock for investments.
+ When many Philippines Public are buying or had bought into the stock for investment or bought into Philippines stocks and equities market, it can only go bearish and go down from here. Majority do not feel that Philippines is bearish.
+ When everyone wants to get out and no one wants to buy, the selling pressure will worsen.

+ The first get-out warning signal was established in August of 2013.
+ Subsequent exit confirmations was established in November-December of 2013 when I warned that worldwide Big Hands, Smart Money and Market Movers are having either mass exodus out or selling/shorting the financial markets, especially in Asia and Emerging Markets.

+ GREEN R1 is a major mid-strength resistance now.
+ YELLOW R2 is major strong-strength resistance now.
+ RED R3 is a very major and very strong-strength resistance now.
+ PURPLE R4 is a minor weak resistance currently.
+ BLUE support is becoming fragile as SM Investments Corp refused to have any Christmas-rally nor any windows-dressing which is expected of a such a popular Blue Chip.
+ There is high possibility of trapping Filipino public with even more sell-downs, a selling warning Donovan Norfolk Ang reiterated since November-December of 2013.

+ All 4 Resistances R1 to R4 are now suppressing SM Investments Corp
+ A final weak rebound off the BLUE channel support is to be expected; however, if SM Investments Corp gets suppressed by R1 to R4, BLUE channel support will proceed to break down for an accelerated sell-off with volumes.
+ This is one of the few stocks trying to hold PSEi currently; however, together with PSEi judged to be bearish, it cannot hold for long.
+ SM Investments, based on the technical price structure, is struggling a last breathe before it breaks down.

Side Note (F.A):
SM Investment Corp's absorption of SM Land will not do well for the company. Worldwide property markets, as analysed, will turn sour in 2014. This is a pull-down for SM Investment Corp's fundamentals. In addition, some of its assets will be marked down too. Deteriorating market conditions will also reduce its business margins.

1. Break down BLUE Channel as first target
2. Break down 605 Peso comprehensively.
(Significant Downside)

Donovan Norfolk Ang Rating:
Bearish for the long term.
Unload/Sell/Short on every Rebound
(Hint for Worldwide Markets: Bearish)

If you're not getting out for safety, are you prepared 
for the high downside with substantial loss for those with buys/longs/investment portfolio?
(Expect to see first real wave of Margin Calls worldwide that had not been seen since 2008 financial crisis)

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