14 - 20 Jan 2013

HSI Broke New High A Look Into Medical Equipment Industry

Market Broke New High Local Property Sector Leads

Last Issue Prediction Our market timing model for both HSI and HSCEI shows an ‘Uptrend’ signal. Down-side risk is not high and the continuation of the current trend is 80%. Risk-to-award ratio is still favorable to in-vestors since the density of ‘sell-off’ day is low. Investors should keep searching for leading industry groups and build a position on the strongest member.

13 Jan 2013

Then….. Hang Seng Index and China Enterprise Index broke the

‘resistance’ after consolida-tion for 2 weeks. Uptrend is still unstoppable and those who put every cent into the strongest stocks of the strongest industry groups are now generating profits. Investors holding strong performers should try to sit tight and wait for a big gain.

MARKET RECAP

14 - 20 Jan 2013

There was not any break-

ing news during the first

four days of the last week. The market stayed stable until the release of better-than-expected Mainland GDP growth. The GDP accelera-tion immediately provided boosting power for the whole market. As shown in the up/down ratio, it has kept declining until a spike on Friday, showing that most individuals turned ac-tive and indicating the con-tinuation of a future up-trend. Most stocks breaking a 52-week high are from the local property sector, which means rental and property price keeps rising.

HSCEI broke new high simultaneously Hang Seng Index broke new high

With 10 years of trading experience, our writer is an active investor. He is currently managing 800k of equity.

Borizon

WINNING INDUSTRY

Medical Equipment

Owing to the merger and acquisi-tion of one of the fast growing companies, the medical equip-ment industry has become the fo-cus of the market. Trauson(00325), the best gainer, gapped up and surged in a single day, ap-proaching the acquisition price $7.5. Microport (00853) and GM Holdings (00801) gained 9% and 18% respectively.

Microport broke the ‘cup with handle’ pattern on Friday. Trad-ing volume was huge, a good sig-nal supporting the uptrend. The probability of continuation of the uptrend is 65%. Anyone who wants to build a position on it should set a protective cut-loss price.

Weigao (1066) is the largest com-pany in the industry but investors should avoid it due to gap down and huge selling pressure.

Microport (00853) breaks out from one-year base

Weigao (01066) faces selling pressure

20 JAN 2013

Borizon Ranking

Microport (00853):

Trauson (00325):

Weigao (01066):

GM Hldgs. (00801):

0%

20%

40%

60%

80%

100%

M T W T F

Down

Up

“Our market timing model for both HSI and HSCEI still shows an ‘Uptrend’ signal. Downside risk is not high and the continuation of the current trend is 85%. Risk-to-award ratio is still favorable to investors since the density of ‘sell-off’ day is low. Mainland property is definitely the leading sector in the future. Anyone who wants to outperform the market should build a position on them.”

Joseph Lau