Monday, 9 November 2009 (After Market Post)

Summary:
HSI 22,207.55 (Change: +377.83/1.73%)
Range: 21,941.62 - 22,214.85
Turnover HKD65.09B

HSCEI 13,318.48 (Change: +301.28/2.314%)
Range: 13,103.84 - 13,318.92

Update:
Alright, it's been quite a few months since I last posted any of my own personal investment thoughts. I've done rather, fairly, really, incredibly good these past few months (but then again, any rational investor would have done so as well). So I've decided to keep updating my investment journal again, but this time, it'll be based on actual investments and more thorough research with my own personal funds, my family's, as well as a few friends who have trusted me with some of their hard-earned money. A minimal amount just slightly above half a million HKD.

Once again, any insights are only for reference only, and are not to be relied upon or interpreted as investment recommendations. Please read for personal enjoyment and feel free to share with me your disagreements or other insights I might have missed.

Today's Wrap-up:
So the Hang Seng Index finally closed above 22,200 again, which was a very important psychological barrier being it's 50-day average. Last Friday after market close, US unemployment figures for the month of October was higher than expected, but investors seemed to have brushed away the lagging indicator and looked upon the leading factor that the change in unemployment, although at it's highest 10.2% is recovering and was at it's best this year. At this point, US Futures are pointing to a positive start, with the DJI +85 points and Nasdaq +15.75 points. The Hang Seng Index should continue its positive start this week, targeting approximately 22,400 range which should be the next initial resistance points marked on October 27.

Week's Outlook:
This week Hong Kong equities will be influenced greatly by earnings coming out of the USA. For Hong Kong itself, Alibaba.com will be reporting tomorrow, and figures from HSBC Finance Corp. (US) will be coming out overnight. Major consumer retail outlet chains in the USA will also be coming out, with Wal-Mart and Walt Disney on Thursday and JC Penny, Abercrombie & Fitch on Friday. On the economic front, we have initial unemployment claim figures coming out on Thursday, and trade balance figures and Michigan's consumer sentiment on Friday.

This Week's Buy:
Chinese banking stocks should continue to outperform the market this week, primarily China Construction Bank (939), Industrial & Commercial Bank (1398) and Bank of China (3988) to be the headers (BOC still lags CCB and ICBC, and ICBC closed at its one year high) - mainly given China's Minsheng Bank's IPO that starts subscriptions on Friday - the news should generate some hype in the market. There also seems to be capital flowing into the mining sector primarily into coals.