7 - 13 Jan 2013

Uncertainties cleared Market Skyrockets

◆ Indexes is in consolidation

◆ Individuals fluctuate

Abstract of past issue Our market timing model for both HSI and HSCEI shows an ‘Uptrend’ signal. Down-side risk is extremely low. Risk-to-award ratio is favor-able to investors. Investors should put their money into the leading industry group such as shipping and solar energy.

6-1-2012

Then….. Shipping and solar energy groups led the market this week. Three major solar en-ergy related companies, GCL-Poly (03800), Singyes (00750) and Comtec (00712) , rose over 20% in a week. The state-owned ship-ping giants, CSCL (02866) and China COSCO (01919), broke out from their bases and surged over 10%. The members in these industries outperformed the market for over 5%.

MARKET RECAP

There was not any break-

ing news this week. Indexes looked calm but individual stocks looked volatile. Lead-

ing sectors switched to solar energy, wind power and shipping. The up/down ratio fluctuated, showing that many individuals have started their consolidation. Up to down ratio dropped to 30% on Tuesday and Friday.

It showed that there was some selling pressure. One should also notice that many of the local property compa-nies have broken their 52-week new high, indicating the continuation of uptrend for the real estate market.

HSCEI acts exactly the same with Hang Seng Index

Hang Seng Index attempts to achieve a new high

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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

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THE WINNING INDUSTRY

Owing to the expectation of the recovery of shipping market, the whole sector has surged and out-performed the market.

China COSCO (01919), the largest state-owned shipping company, has broken out from the ’cup with hands’ base and risen over 20% in two weeks. The uptrend was sup-ported by the increasing trading volume. Anyone who bought this stock should hold it at least until the end of February such that the expected return of this stock is maximized.

CSCL (02866) also has broken out simultaneously with COSCO. Such signal increases the probability of success. The probability that the uptrend continues is over 70%. Other fast-growing members in-clude CIMC (02036) and China Shipping Development (01138).

China COSCO (01919) breaks the ‘cup with hande’

CSCL (02866) breaks out from the base and rises

“Our market timing model for both HSI and HSCEI still 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 investors since the den-sity of ‘sell-off’ day is low. Investors should keep searching for leading industry groups and build a position on the strongest mem-ber. Remember to set a cut-loss price.”

Joseph Lau

What now?

13 JAN 2013

Borizon Ranking

COSCO (01919):

CSCL (02866):

CIMC (02039):

CSD (01138):

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