Outlast... Atlas

Don't try to decipher the title. There's no meaning attached to it.

After saying don't touch Philex, it seems to have bucked its trend, at least temporarily. Volume was quite strong, looking at the chart. It's been going down for almost a year already, with intermittent bear rallies that salvage its share price. I suppose that at 9.25, it had gotten to a more tolerable PE ratio (I don't have it, but I suppose the share price is now closer to it).

So time to buy? Perhaps as a trading buy, yes. I can't point my finger and say, "Oh, PX is going back to 20."

Atlas Mining on the other hand, fell through the 11.00 roof. Tsk tsk.

As a trader, I'm frustrated with how Atlas performed this week.

If for long term holding, the stock should be a good one to hold, of course with one caveat - that they continue to earn money. That's why I said that Atlas should still be considered a speculative buy for the investor. When I said investor, it was someone who took a long term view.

Readers of my blog would know that I differentiate a trader from an investor. Trading is short term; investing is long term.

Trading Atlas?

Given my crude chart courtesy of PSE's website, support for Atlas is at 10.50. I think there may be some trading opportunities for it, so that should be a good entry price next week. The selling pressure should ease and hopefully, the buyers will regain their momentum.

If the PSE wants to attract more traders and investors, they should improve their charting program. I'm sure there are people out there who'd appreciate that.

One of the tools I always look at is the buy up vs. sell down volume. While this is taxing as you have to monitor it daily, it gives you a good grasp of the momentum of the stock. More sellers may mean bearishness, profit taking, etc. I don't buy when there's too many sellers because it means a lack of faith in the stock.

If the stock is continuously being bought up, then by all means join the party!

This style is only applicable to traders who tape read. If you have a day job and can't do that, then at least have a reliable stock broker who can do it for you. Usually, this can happen if your stock broker is also a trader. I'm sure he or she uses this tool too.

News also came out recently about the increased mining output of the Phils. This is certainly good news for the industry. I believe that this is an industry that can provide new avenues for economic growth.

Until the next post!