Stock Smarts Picks of the Week : May 20 – May 24, 2013 by Marvin Germo

For investors out there who want to have weekly source of free pointers to help you decide, Marvin Germo in his site has that regular dose of info.

For this week, below is a sample post in his site marvingermo.com.

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Last week marked another awesome milestone as we broke the 7,300 and momentarily hit 7,400 on intra day trading after which our market went down to earth on the same day and settled somewhere below 7,400.  This sudden surge was brought about by the positive sentiment from our recent elections.

After hitting highs we have seen some healthy corrective selling happening to provide a profit taking balance for those that would want to rake in some cash.  Meaning the market went down but that’s all normal and part of how the market works.

If you look at this chart below you will see that our market has formed a short term support at 7,255 and a resistance at 7,393.  If our market stays afloat and strong above 7,255 it would be good to buy at that point as we can expect it to go higher.  If our market fails to break 7,400 you can sell your positions and just wait again near 7,255.  If it breaks out higher above 7,400 don’t be scared to buy as we will experience further breakouts to come and bring our market higher.

For this weeks stock smarts picks I am going a different route.  As this time I will be featuring the banking sector and some select stocks and making the recommendations based on technical analysis as per request of our subscribers, readers and clients.  Just keep those requests coming as live to help and serve you further.

From my previous posts and articles we all know that in an upward economy we can be certain that banks benefit the most as they are exposed in almost everything under the sun!  Record earnings that banks are disclosing now are expected and should go even higher as we are just at the beginning of even greater things to come for the country.  Just wait until more and more funds come into our market!

Here are some of our immediate buys:

BDO [BUY] – it’s currently at its support level and we can expect it to bounceback and trend even higher over the next few weeks or so.  What’s amazing about BDO is your technicals follow the fundamentals and valuations.  Expect to buy anywhere within the support price range.

BPI [BUY] - this stock just brokeout from a short term resistance and using the principle of support and resistance we can expect it go higher as we see more buying pressure over come the sellers.

Here are some wait and see buys:

EW [Wait and BUY] - East West Bank is still in a very good uptrend, it would be cheaper to buy it if it would go to its support at around 36 Pesos per share.  But if you don’t want to wait it’s still good and has a large technical upside for it to bounce further.  Personally I would wait for it and see if it will bounce for the support, then buy.

MBT [Wait and SEE] - Metrobank is currently at a point where it’s best to wait and see.  If Metrobank trends higher in the next few days it would be a good buy at that point.  If it falls down over the next few days I would avoid the stock until it breaks out or until it goes down near the support around the 122 peso level where it would be again cheap to buy.

Here’s one stock to avoid for the week:

SECB [Avoid and SEE] - Security bank just dropped from being bullish into something else.  Personally I would avoid the stock until I see it go back into an uptrend!  The company is good but the stock has fallen, I’d wait and see what happens before I would get in.  Besides there are 4 more stocks above that are better than security bank!

Our market will go even higher not just now but for the years to come.  It’s time to stay invested and stay the course of our market for the long term!  It’s time to invest!  Look up Philippines it’s our time!

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