Has the Ghost Month in the Philippine Stock Market Officially Started?


This is a continuation of my article entitled “Why AUGHOST Month Is NOT a Scary Month in the Stock Market“.

So, has the “ghost month” officially started?

There are unique events that drive the market up and down each month. It just so happens that people have been accustomed into associating the phrase “ghost month” in the stock market.

In my other businesses marketed in the US and other English-speaking countries, we call the month of August as a “summer sag” month. During the “summer sag” season, they say sales are low and slow. But at the end of the day, when sales are low and slow, it’s not really because of the month, per se. Blaming the month of August is only the Sales and Marketing Team’s scapegoat for not doing a root-cause analysis.

In the same way, like I said above, the stock market is in red today but not because of the month per se. PSEi closed in red today because of the bearish price action of most of the blue-chip stocks today. Realize that these blue-chip stocks have histories of bearish price actions 12 months a year; not just in August.

What’s my point?

In business: Not because it’s August, we will just slouch in the couch, grab a bottle of beer, and accept the fact that sales will be low and slow without checking what’s being done in the sales and marketing department. Things are happening not because of the month but because of the unique factors that are taking place.

In the stock market: Not because it’s August, stocks will just fall for no reason at all. Again, things are happening not because of the month but because of the unique factors that are taking place.

Foreign Fund Flow

Do you see today’s P2.5B worth of Net Foreign Buying? Green bars outnumber and outpower the red bars.

PSEi - Foreign Fund Flow - 30 Days as of August 3 2016


Is PSEi a not-so-safe index to invest into? Volatility shows that it’s still in a low-risk level.

PSEi - Volatility - 30 Days as of August 3 2016


As foreign investors have been accumulating, volume maintains a steady and stable state.

PSEi - Volume - 30 Days as of August 3 2016

Profitability in the stock market is not dependent on whether it’s January, February, March, April, May, June, July, August, September, October, November or December. Profitability is based on your self-discipline, mindset, skills, strategies, tools, and experience. Stop scaring yourself. Busy yourself up in acquiring those elements that make a profitable trader and investor instead. Bottom line is, the final decision on whether or not you’ll lie low in trading or investing in the month of August is yours. No one’s stealing that away from you.

Jaycee De Guzman

Jaycee De Guzman

I have helped thousands of Filipinos trade independently and invest profitably through the Equilyst Analytics, Inc. I have also helped hundreds of SMEs and Fortune 500 companies build and boost their online presence through iPresence Digital Marketing, Inc. Read my About Me page.
Jaycee De Guzman

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