Last thursday (26 March) Mr. Li Ka-Shing said "If you have money in your pocket, consider buying into stock". As for the property market in Hong Kong, he said,"History tells us that if you buy in a slow market, in a medium term you get good returns". However, he recognized that the environment remains shaky and volatile and advised against borrowing to invest. His proclaimation sent Hang Seng Index up 3.6%.
As mentioned in my post on 26 March 2009, It is very likely that the low of 11,015 on October 2008 is the bottom for Hang Seng as shown above.
The wave 1 as shown is a leading diagonal followed by a simple a-b-c corrective wave 2. It is currently in sub-wave i of wave 3. Sub-wave ii of 3 provides good entry point as sub-wave iii of 3 is usually very powerful and juicy.
Let's look at Mr. Li core companies, Hutchison Whampoa Ltd and Cheung Kong Holding. Hutchison's peak in October 2007 was HK$98.45, the stock fell all the way to HS$34.10.
From November 2008 low of HS$34.10, it completed wave 1 at HK$44.60, followed by a-b-c formation for wave 2. It closed last Friday at HK$41.90. Next pull back will provide good entry point. As this is a low risk stock, it may give only 50% to 60% return.
Cheung Kong's peak is HK$158.30 in November 2007, unlike Hutchison, it moved in 5 down waves to a low of HK$56.00 in March 2009. Since then it has recovered to HS$71.00 last Friday.
For Hutchison, the November 2008 low is very likely its bottom, whereas the HK$56.00 low of Cheung Kong two weeks ago may not be its bottom. The wave A assigned needs confirmation.
Let's look at Mr. Li core companies, Hutchison Whampoa Ltd and Cheung Kong Holding. Hutchison's peak in October 2007 was HK$98.45, the stock fell all the way to HS$34.10.
From November 2008 low of HS$34.10, it completed wave 1 at HK$44.60, followed by a-b-c formation for wave 2. It closed last Friday at HK$41.90. Next pull back will provide good entry point. As this is a low risk stock, it may give only 50% to 60% return.
Cheung Kong's peak is HK$158.30 in November 2007, unlike Hutchison, it moved in 5 down waves to a low of HK$56.00 in March 2009. Since then it has recovered to HS$71.00 last Friday.
For Hutchison, the November 2008 low is very likely its bottom, whereas the HK$56.00 low of Cheung Kong two weeks ago may not be its bottom. The wave A assigned needs confirmation.
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