◆ Mainland property sector leads

◆ Market trend is still unclear though hot money flows in

Abstract of past issue Mainland property will be the leading sector. Investors should choose the compa-nies with strong earnings. Greentown(03900), SUNAC(01918), Yuexiu(00123) are the potential companies. The current trend of SUNAC is leading the market and the chart pattern is the best among the industry. It is the last chance to get on the ride.

4-11-2012

Then….. The whole mainland prop-erty sector leads the market in these three weeks. Green-town breaks out from the base and rises 20%. SUNAC, the most potential one, even continues its uptrend under the shadow of placement. China Overseas(00688) and CR Land(1109), the blue chip giants, break new highs as the market struggles.

MARKET RECAP

The Hong Kong equity

market mainly follows the western stock market. DJIA and S&P 500, the major US

indexes, rebound this week and recover the 13000 level. Apart from the turns of the trend of western market, in-flow of money also pushes up the market. Hong Kong dollar rises to 7.75, which is a good catalyst for the mar-

ket. The up/down ratio is improved significantly. 60% of stocks go up, showing that most of the individual stocks are rallying. Leading sectors are Mainland property, Gas supply, REITS and Gamble.

HSCEI rally but fall behind HSI

Hang Seng Index follows the rebound of western market

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 600k of equity.

Borizon

3

THE WINNING INDUSTRY

As predicted in previous market updates, the mainland property sector outperforms the market and creates numerous opportuni-ties for investors.

SUNAC(01918) breaks out from a profitable ‘base on base’ pattern and shows a strong uptrend. It can even rise under the place-ment of shareholders. The intra-day rally with huge volume sup-port almost guarantees its bright future.

Yuexiu(00123) climbs over 15% . Investors who have bought it could consider selling if it rises further to $2.4 level. The purpose is to raise cash to prepare for the next potential stock. Yuexiu could provide a steady return but not an extraordinary return.

Borizon Ranking

Yuexiu (00123):

SUNAC (01918):

Greentown (03900):

Longfor (00960):

SUNAC (01918) surges after the breakout

Yuexiu (00123) continues its uptrend

“Our market timing model for HSCEI shows a ‘Neutral’ signal while that for HSI shows an ‘Uptrend’ signal. Technically, the ‘density’ and ‘quantity’ of the previous sell-ing pressure was too high, which makes the indexes easily rebound. By considering the risk-to-reward ratio, reducing the position is the most appropriate measure. Raise cash to prepare for the next up or down

trend.” Joseph Lau

What now?

25 Nov 2012

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