On June 19th, I suggested, hold do not buy yet. Since then the market went down further by more than 500 points. Based on the action yesterday, however, where the PSE index walloped 211 points or 3.41%, my suggestion now is, start buying. Fire off some of your ammunition, but not all at once. Although I do not believe the market will go much lower, it is possible it might indeed go lower.
I say buy because my technical indicators now say buy. Although it is not foolproof and should be treated as such, it has had a good record for me. However, it is still prudent to be cautious. Although the market is not as expensive now as it was last week, it is still on the expensive side. More importantly, as the market can get extended on its up move, it can do so as well on its down move. Furthermore, we are unfortunately in the mercy of foreign investors. And it is because of this possibility that it is prudent to keep some of your powder dry so you can take advantage of better prices when the market goes down some more.
Remember it is next to impossible to pick the exact short term bottom, you just want to increase your chances you do your purchases near it so that it is more likely the next big move would be up rather than down.