Figure 1: PSE Index Chart
Our local PSE index has exceptionally perform very well the past week. Pushing its limit to finished at 3902.56, just barely penetrating its all time high at 3896.74. Our market is very much overextended and way into the overbought area of our indicator. This kind of market move is very dangerous cause this is very prone to big market correction. Looking at a market cycle we are very much located to the area where there is so much greed, instant wealth, then euphoria which will eventually lead to the "bubble burst". Adding more shares this time is more riskier due to the fact that most reward to risk ratio (3:1) of stocks are now violated.
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