From an Elliott Wave Theory analysis point of view, the Philippine Stock Exchange Index (PHISIX) is wave 5 bound sooner or later. Elliott Wave Theory says that it takes five waves for the market to reverse it's trend, three waves going the direction of the trend while two going reverse.
The chart below shows that PHISIX is already in wave 4 (from 2009 reference) and should the trend continue, wave five is just around the corner. The two boxes are the two uptrends (value of PHISIX going up) and those that are encircled are reversal points where the value of PHISIX stopped going down and resumed an uptrend.
The second circle (right side) signifies that PHISIX is already on a downtrend (value of PHISIX going down) and according to Elliott Wave Theory, this is the fourth wave.
How significant is wave 4? Wave 4 signifies that a corrective wave is coming sooner or later thus PHISIX will once again start to go up. This is a time for traders and investors alike to keep a very close eye on the market because PHISIX will start to go up once again in no time.
However, be a little bit cautious as some bad news are looming around the corner. London based Barclays Capital reported that RP's inflation rate might exceed 4.5% by 2011, not a really good value if you ask me. It might make investors cover because it will make the value of their investments smaller.
Summing it up, PHISIX looks promising technically but it will take a matter of time to see if bad news could shake it fundamentally. Be a little more patient and vigilant. Good times could just be around the corner and it brings with it some serious growth and by serious, that means somewhere around 40% to as far as 100% for the year.
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