Bully!

We have a bull that is a “bully”! Just when you think the market is going to take a break, the bull comes roaring back with vengeance. Today the PSEi rose by 63.5 points to close at 2,818.0. I guess, old bets are off and new chips are on the table. The bull will not stop until it reaches 3,000.0. I was “bullied” as well. I was thinking that the PSEi would take a breather at the 2,700 levels. It turned out to be a mere “pit-stop” for the bull.

In fact, it will take a “bully” to push the market higher. As it is, share prices have moved up in an orderly manner. There are equal amount of transactions across the different price fluctuations. This means that investors sitting on significant profit gains have cashed in their chips whilst new players pile in. So what will the old investors do who where left in the pits? Buy-back and push the market higher.

As it is, the scenario is evolving into a textbook case of an early stage bull-run. This suggests that every sector will see significant increase in valuation regardless of the economic cycles they are in. It will simply be liquidity flow chasing every stock in the market. As I have mentioned before, this is a “value-creating” market. So sit tight and run your profits. This can be 1993 all over again when the PSEi reached 3,400.0.