The Awakening

Wow... Today's market action brought us twice the good news. One is that the index soared higher, up by more than 2 percent. The other is that high volume trading is back (at least for today). And what do these two market moves tell us? These mean that market sentiment is outright bullish. But then again, I can't help but be worried by overly bullish conditions.

The index rise is led by blue chips and selected second line issues. PLDT was up almost 2% while consumer stock URC was up a whopping 4%. It's parent company, JGS, likewise climbed back 0.3 pesos and almost eradicated yesterday's losses.

Select bank stocks roared today such as BDOand the 'uber' undervalued PNB, while BPI and MBT just er... ...purred. Mining and oil stocks also flew, probably boosted by increasing oil prices (Oil just busted through it's 84-85 dollars/barrel resistance the past week)

Property stock MEG rebounded from yesterday's decline and avoided a technical resumption of a downtrend. Watch out for MEG establishing a higher-high after recent higher-low of 1.22, as this will reinforce an uptrend pattern.

Where do we go from here? Expect some profit taking within the next few trading days though I also expect the 3200 index level to hold. There is still more room on the upside especially with improving US economic conditions. Prudently, keep a healthy cash position (about 15-20%) of your portfolio to keep your guard up.