Disclaimer Im not an expert Im a small

Disclaimer I’m not an expert I’m a small investor Thoughts are based on experiences

Newbie Mistakes • • • Identity Crisis Shortcuts – Greedy vs Patience Little Emotional Maturity Uses Hope as Strategy Buys Long Term but Think Short Term Revenge leads to gambling

Stock Market Sharing of Thoughts • 1)Trading Systems • Part 1. Chart Settings (COL, Technistock. com, Stockcharts. com, Amibroker in separate file) Part 2. Importance of RSI • a. Divergence • b. Walls • c. RSI 50 & RSI 70 d. Pattern Confirmation • Part 3. Applying the indicators Part 4. Kiss of the 50 ma • Part 5. Wedge Theory • Part 6. The 20% Rule

Stock Market Sharing of Thoughts • 2) The Parabolics – The mother of all chart patterns a. Samples of parabolic curves b. Parabolic Theories and Notes - Parabolic wall - Parabolic burst - Last wave up - Parabolic Tops 3) Deciphering Disclosures – The MRC Case + Megaworld in separate file • 4) The Arbi Play • 5) Insider's Guide • 6) The Perfect Stock • •

• 1) Trading Systems Part 1. Setting COL, Technistock & Stockcharts. com charting platform. Here we use the 50 sma (or bband 50, 0. 20), and RSI 30 -day setting. We use linear chart.

Logarithmic vs Linear

Logarithmic vs Linear

This is the default COL charting platform. We will modify this using a single SMA and RSI only

Click to detach and magnify chart 1 Hide volume 1 2 Hide other MAs by clicking SMA 2 and SMA 3 3 1 3 Change SMA 1 to 50 from 32. Put cursor to number. Use delete key or backspace key to erase number. Type 50 and press enter. 2 2 3 1 Change 6 m to 1 y 2 Change the price chart type from candlestick to ohlc bar 3 Click LIN

This is now what the COL chart looks like after we change the SMA setting

Click drop down icon beside DMI Scroll up and choose ---- Change MACD to RSI by clicking the drop down icon. Scroll Down and choose RSI. Change RSI setting from 14 30 70 to 30 50 70. Again put cursor to number. Use delete or backspace keys to erase default number. Change to new setting and press ENTER.

To hide the buy/sell signals, put cursor to graph and right click. Simply Uncheck the box for show buy / sell signal.

In order to save settings, click the “diskette” icon for saving preference. Each time you open your COL account, click the load preference icon (open folder).

www. technistock. com

www. stockcharts. com

• 1) Trading Systems Part 2. Importance of RSI • a. Divergence • b. Walls • c. RSI 50 & RSI 70 • d. Pattern Confirmation

A. Divergence

RSI Divergences Daily Chart. Divergences as indicator for breathers.

Weekly Chart. Divergences as indicator for turns.

PSEi Weekly 5/18/12

B. RSI Wall

B. RSI Wall

B. RSI Wall

C. RSI 50 & RSI 70

LC – RSI 50

LC – Parabolic Level 70

D. Confirming Patters using RSI

LC – Pattern Confirmation

D. Pattern Confirmation

D. Pattern Confirmation

Part 3. Applying the Indicators Above 50 ma & RSI 50 – Uptrend Below 50 ma & RSI 50 – Downtrend Parabolics lives in a high RSI environment RSI 50 and near are considered oversold/overbought coming from a high/low RSI but be cautious on reversal of trend. • Spikes/run ups occur when walls are broken • •

Trading the signals

Part 4 - Kiss of the 50 ma

Part 5 - Wedge Theory

Wedge Theory

Wedge Theory

Part 6 – The 20% Rule • Use high of stock price (high x 0. 80), the 20% correction act as major support or pivot. • Use low of stock price (low x 1. 20), the 20% pullback act as major resistance or pivot

2) The Parabolics – Sample: Nihao

A) Sample - Nihao’s Parabolics

B) Parabolic Theories - Parabolic Wall

B) Parabolic Theories - Parabolic Wall

B) Parabolic Theories - Parabolic Burst

B) Parabolic Theory: Last leg up

B) Parabolic Theory: Last leg up

Parabolic Theory: Parabolic Top • Parabolic top Parameters: RSI of daily in parabolic state exceeds that of RSI of weekly in parabolic state. RSI Daily > RSI Weekly • Theory: This suggest the stock in study is toppish, high risk and likely to trigger a deep correction

Case 1: MIC ; Price: 5. 90 ; RSI daily = 81. 60; RSI Weekly = 75. 44 Theory suggest toppish for now.

Case 1: MIC ; Price: 5. 90 ; RSI daily = 81. 60; RSI Weekly = 75. 44 Theory suggest toppish for now.

Case 2: GOLD

Case 2: GOLD

3) Deciphering Disclosures – Case: MRC • • • MRC – NEWBIES: The stock you must AVOID at all June 17, 2011 at 2: 12 am Since their staggered “praise” releases made, public were all smiles as they bet this will be the new lepanto or east asia power, thus making them instant rich. hidden in their disclosures is the true meaning of HYPE. Why MRC is an avoid for you. Did you know that MRC have more than 3 B shares under locked up that was released last June 14, thus the stock price plunge. There will be plays but newbies this type of game is not for you. Be patient. No short cuts. You will have your time. MRC more than 3 B shares lock up of for release can be found at http: //www. pse. com. ph/html/disclosure/pdf/2011/pdf/dc 20114514_MRC. pdf

3) Deciphering Disclosures – Case: MRC • • • NEWBIES BEWARE – MRC June 21, 2011 at 2: 46 am For the nth time. Pls stick to the blues. have patience in stock market investing. Playing fire is not for you. Daytrading, T+3, Scalping, Playing basura. Those are for traders who knows how to navigate the markets and most of all knows how to cut when the trend goes against their way. If your a newbie and your orientation is into high risk trading, you’ll end up being a compulsive trader. The more you lose, the more you wanted revenge and likely end up being broke. Pls dont be like me when i was a newbie. I beg you. STAY AWAY FROM THOSE HYPED STOCKS!!!!! Now at 0. 51, coming from a low of 0. 49, previous was 0. 55 with a high of 0. 57, if you have MRC at 0. 55, what will you do?

3) Deciphering Disclosures – Case: MRC

3) Deciphering Disclosures – Case: MRC

4) The Arbitrage Play • DGTL -TEL tandem – The Arbi Play • January 4, 2012 at 1: 13 am • Arbitrage play. I first heard this word from a Finance Manila icon named Camel many years ago. First, what is an arbitrage? According to investopedia. com • Definition of ‘Arbitrage’ The simultaneous purchase and sale of an asset in order to profit from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. Arbitrage exists as a result of market inefficiencies; it provides a mechanism to ensure prices do not deviate substantially from fair value for long periods of time.

4) The Arbitrage Play • • On my Pesos & Sense post regarding stock leasing nag papahiram sila ng stocks para dun sa gusto humiram, kung anong purpose, nasa humiram na yun (like shorting or gusto mauna magbenta bago bumili). limited access lang to, sorry sa public, deadma tayo dito. only for the biggies. current example isdigitel (symbol DGTL) and PLDT (symbol TEL). ang “malakas” na institutional investor ay pwede humiran ng stock ng PLDT sa stock leasing. sa complikadong terminolihiya pagkakakitaan eto ng pera ng isang investor sa pamamagitan ng tinatawag na “arbitrage play”, sa layman’s term ang investor na to ay mag take advantage sa “price differential” ng merkado between DGTL and TEL. sa kasalukuyan kasi ang dgtl ay bibilhin ng pldt sa halagang malapit sa 1. 60, OR pwede rin e convert eto sa PLDT shares. to make the story short, ang presyong DGTL na 1. 60 ay katumbas sa PLDT na 2500 after ma convert ang x number of shares ng DGTL ng investor sa PLDT (may calculation yan). so ang mangyayari, hihiram ng pldt shares, bebenta sa merkado kasi ang pldt na price ay lampas sa 2500 (malapit sa 2600). bibili ng dgtl at e convert sa pldt to replenish the hiram. milyon ang transaction dito. sa 100 m na capital mo na laway lang 2% gain is already 2 m na

The Arbitrage Play • The arbi play was most common way back then (with the A & B shares on Meralco, First Phil Holdings, San Miguel to name a few) and i know it still exist today at some point to NYSE ADR PLDT and the local PLDT here. I said at some point because technology have made the arbi plays of both PLDT new york and our local bourse seem difficult to execute. As Investopedia. com explains, • Given the advancement in technology it has become extremely difficult to profit from mispricing in the market. Many traders have computerized trading systems set to monitor fluctuations in similar financial instruments. Any inefficient pricing setups are usually acted upon quickly and the opportunity is often eliminated in a matter of seconds.

4) The Arbitrage Play • Now lets do the math and how this toy for the big boys work. 1, 559. 28 DGTL shares equals to 1 common share of PLDT. that means … 1, 559. 28 shares or realistically say 1, 560 shares bought at 1. 60 means 2, 496 price for PLDT. to make things simplier, a 2, 500 tag. • So here it goes. DGTL @ 1. 60, TEL @ 2, 500

4) The Arbitrage Play • Current price of DGTL is between 1. 60/1. 61 for TEL its at 2, 586. A dgtl share bot EVEN at 1. 61 will put a tag conversion for your PLDT shares at 2, 510. The arbi play goes like this. I borrow number of shares of PLDT, sell this at 2, 586 and buy x number of DGTL at 1. 60. Your “contacts” then wil facilitate the conversion, the stock leasing and everything for you. in the process your TEL converted shares valued at 2, 510 was sold at open market for 2, 586 with a nice gain of 3. 02%. Less charges and you’re still good. Now the transactions being involved here since last December runs to hundreds of millions of pesos. Could have reached the B-mark probably. A 100 -million peso worth with a gain of 2% net will yield 2 million pesos. 1 billion, well a hefty 20 million bucks. A few calls from here to there and viola, easy money.

The Arbitrage Play • You can do arbi plays on various stocks like LC/LCB if you got the facility, but that’s another story. You can find more plays by comparing stocks. • Here’s how: On your charting platform, click the tab “%” (percentage). Simply, input the stock you want to compare.

Comparing LC & LCB

Insider’s Guide Personality Affiliations “Known” Brokers RSA ( Ramon S. Ang) SMC, LIB, CYBR, MER, GSMI, PCOR, PF, PSE, SMB Asiasec, Mandarin, CS, CLSA, UCPB MVP ( Manuel V. Pangilinan) MPI, MER, TEL, PX, LC, MA CLSA, Mac. Q Lopezes FPH, FGEN, MER, EDC, ABS, LPZ PCCI, Summit, BDO Roberto P. Ongpin WEB, ISM, AB, ALPHA Belson Ayalas AC, ALI, BPI, GLO, IMI, MWC BPI Aboitizes AEV, AP , UBP Papa, SB Eqty Gokongwei’s JGS, URC, CEB, DGTL, RLC ATR Consunji”s DMC, SCC Papa Henry Sy SM, SMDC, SMPH, BDO, CHIB, ALHI, MWIDE, BEL BDO, Lucky, Regina Enrique Razon ICT, BLOOM CS, Venture Ramos Group UPM, APO, AT, SHANG, OV Alakor Jerry Angping GEO, NI, ORE, SLI, VLL, PO, DIZ Angping + a lot Yuchengco RCB, EEI, HI RCBC Andrew Tan MEG, ELI, AGI, SUN Aurora, Abacus, Summit, UBS, CLSA Lucio Tan PAL, ETON, PNB Panasia, Triton Gotianun’s FDC, FLI Summit, ATR Tancaktiong JFC Felipe Yap LC/B, MA/B, ZHI Fyap, BPI Willy Ocier APC, BEL, SINO, LR Belson Conception’s RFM, SFI Gatchalian PHES, FPI, WIN, WPI, ACE Westlink, Transasia Chucky Arellano ACE, EG, ATN, PRC, LIHC, CHIPS PCCI, Guild, Done-tru a lot

Nihao Daily

Nihao Weekly

• 6) The Perfect Stock

YOU

Thank You ! To God Be The Glory !