To Trade or to Invest? - Philippine Stock Exchange, Inc. (PSE)

 Timing is everything - sort of. The Philippine Stock Exchange, Inc. (ticker: PSE) broke out to as high as Php 245 a share before closing at Php 237, a 3.33% gain from it's previous close at Php 229.60. For technicians, the breakout could be attributed to the symmetrical triangle formation illustrated above. In addition to the technical aspect of the stock, the market in general - except for the industrial sector - closed in the green with 100 advancers, 54 decliners, and 41 neutral-"ers". The Philippine market traded on a positive note responding to the bull run in the US markets with the DOW up by 337.32 (2.87%) in a single day. Following this logic, we could also say that PSE's price increase is attributed to the US market. This is why I love the eccentricities of the stock market - given a sound explanation, anything can be attributed with anything. 

Anyways...

I've spotted PSE's  symmetrical triangle formation two days ago but didn't expect it to break out (or break down) anytime soon, less alone two days later. Even though I love breakouts, I usually like taking my chances before a potential breakout may occur. Therefore, should you intend in entering into a position with PSE,  be cautious because a symmetrical triangle breakout is susceptible for it to return to the previous support or resistance line that it just broke through. Hence, make sure to watch for this level to hold.

On the other hand, if you are looking to INVEST in (the) PSE, let me be your devil's advocate and give you a couple of speculative advice.

Invest in PSE because:

1) Like a casino, the house (PSE), never loses.

2) Increased trading activity especially through IPOs, secondary offerings, back door listing, and a slight increase in trading hours among others this year (and the years to come!).

 - With the PSE expecting to increase it's trading hours next year, we can speculate that this may increase trading activity as well.

 - Listing on the PSE, whether through an IPO or through a backdoor listing, appears to be an "IN" thing right now.

3) PSE regularly pays dividends (not so speculative).

Don't invest in the PSE (for now) because:

 1) Like 2008, you expect PSE's stock price to drop assuming that a global recession will occur in 2012. Which would then make it a better time to buy because PSE will be cheaper.

Again, timing is everything - sort of. 

Disclosure: I do not own PSE shares in my portfolio. I don't intend on buying PSE shares any time soon.