31 Dec 2012—5 Jan 2013

Uncertainties cleared

Market Skyrockets

◆ Fiscal cliff avoided, global markets skyrocket

◆ Bull market will continue

Abstract of last issue Our market timing model for both HSI and HSCEI shows an ‘Uptrend’ signal. It is sug-gested that investors build positions on leading sectors including the Mainland property……...

Hapson (00754), the mem-ber of the Mainland property sector, has doubled and it is now in consolidation. A ‘high tag flag’ pattern is forming and it is buyable if it breaks the $13 level. Huge profits can be made due to strong fundamentals and policies of the government.

30-12-2012

Then….. The whole mainland prop-erty sector leads the market. Hapson (00754) breaks $13 level and rises over 20% within 2 days! Investors who have built a position on such fast-growing stock should sit tight and hold it for at least two months.

MARKET RECAP

The fiscal cliff of the US is

solved, which is good news for the global equity market.

Hong Kong is not an excep-tion. Hang Seng Index imme-diately rose 600 points on Wednesday, presenting a good start of 2013. Individ-ual stocks benefited from the rise. The up/down ratio stays at a high level, showing

that individuals perform quite well. Leading sectors include Mainland properties, shipping, home appliance, solar energy. The members of the above industry group normally achieve 10% gain in a week.

HSCEI reaches 12,000 level

Hang Seng Index penetrates 23,000 level on the upside

2

Market Update

This article is intended for students interested in the stock market. With 10 years of trading experience, our writer is an investor. He is currently managing 800k of equity.

Borizon

3

THE WINNING INDUSTRY

Owing to the recovery of the Mainland ‘A’ share market and the increase of the trading volume, the Mainland securities group surges and leads the current mar-ket uptrend.

Haitong Securities (06030), the second largest firm in the indus-try group, formed a ‘W’ base and broke out in mid-December. It then rose over 20% within just three weeks, which is a significant signal for the continuation of a future uptrend. Anyone who bought this stock should hold it at least until February.

CITIC securities (06030) is the largest company in the group. Its trend is strong and the continua-tion of the uptrend is about 70%. Other fast-growing companies include Shenyin and Guotai.

Haitong (06837) breaks out from a ‘W’ base

CITIC securities (06030) skyrockets

“Our market timing model for both HSI and HSCEI shows an ‘Uptrend’ signal. There is not much selling pressure. Downside risk is ex-tremely low and the continuation of the cur-rent trend is 85%. Risk-to-award ratio is fa-vorable to investors. Investors are suggested to put his every cent into the leading indus-try group. Try to hold and sit tight along the trend. Remember to set a cut loss price.”

Joseph Lau

What now?

6 JAN 2013

Borizon Ranking

Haitong (06837):

Guotai (01788):

Shenyin (00218):

Haitong Intl(00665):

CITIC (06030):

0%

20%

40%

60%

80%

100%

M T W T F

Down

Up