10-15 Dec 2012

Mainland’s bull market begins

China Enterprises outperform the market

◆ Mainland’s bull market begins

◆ China Enterprises outperform the market

Abstract of last issue Our market timing model for both HSI and HSCEI shows an ‘Uptrend’ signal. The di-rection of the market is clearly going up. By consid-ering the expected return and the potential drawdown, investors should immedi-ately accumulate their posi-tion on leading sectors.

9-12-2012

Then….. Benefiting from the strong rebound of Mainland stock market, the major indexes of Hong Kong keep making new highs after the clear up-trend signal (indicated by a red arrow). The daily trading volume keeps increasing, showing that the current up-trend is supported by suffi-cient buying power. Most of the common stocks are surg-ing. Market atmosphere is optimistic.

MARKET RECAP

After a year long of down-

trend, mainland stock mar-ket finally shows a strong re-bound with the support of huge trading volume. Shang-

hai Composite Indexes rally over 4% on Friday, issuing a significant uptrend signal. China Enterprises hence be-come investment targets and outperform the market. The up-to-down ratio looks good, showing that most of the

common stocks can benefit from the trend. Under the consistent inflow of hot money, HKD keeps standing on 7.75 level, which gives confidence to the market. Leading sectors are mainly large cap stocks.

HSCEI outperform the market

Hang Seng Index shows steady uptrend

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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 700k of equity.

Borizon

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THE WINNING INDUSTRY

Gas supply has been the leading sector 2 months ago. The uptrend is supported by the strong funda-mentals and technical factors.

An uptrend occur quietly. Newo-cean Energy (00342), a small cap stocks, consistently broke resis-tance and keeps surging with enough trading volume support. It has doubled in just two months.

China Gas (00384) finally began its move a month ago. It surged 40% and made historical high. Its interim earnings showed an accel-eration, which gave its stock price a perfect catalyst. Currently, its resistance is on $6.4. Investors can build a position on it if it breaks this level. Remember to set a cut-loss price for every trade.

China Gas Hldgs. (00384) makes historical high

Newocean Energy (00342) doubled in two months

“Our market timing model for both HSI and HSCEI shows an ‘Uptrend’ signal. The continuation of the current trend is 75%. The potential expected return is getting higher and hence significantly improved the risk-to-award ratio. By considering the expected potential gain and estimating the potential drawdown, investors should put their every cent into the market.” Joseph Lau

What now?

15 DEC 2012

Borizon Ranking

China Gas (00384):

Newocean(00342):

Kunlun (00135):

Tian Lun (01600):

CR Gas (01193):

ENN (02688):

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