Outlook 2021 and Top Buy Stocks(Lists)

Two important lessons to learn from 2020 stock markets are to keep a long-term perspective and the belief that markets are forward-looking. Heading into 2021 we look forward to hopefully a year when the pandemic subsides, lives return closer to normal, and economic recovery picks up. Below are the highlights of the sectors with stock in focus for the year 2021.

1. Semiconductor/Chips: The global Semicon industry suffered its worst year in almost two decades and picking up to return to growth in 2020, according to World Semiconductor Trade Statistics. The group sees Semicon sales accelerating further in 2021. The fastest-growing category of semiconductors in 2021 is memory chips, with forecast growth at 13.3%. As electric vehicles, smartphones, 5G equipments etc all need chips, chips are in great demand. The largest chipmaker in the world is Taiwan Semiconductor Manufacturing(TSM), and other top players including Advanced Micro Devices(AMD), Nvidia(NVDA), Qualcomm(QCOM), Apple(AAPL), and ASML(AMSL). Or Semicon Sector ETF SOXX.

In Hong Kong, related top players including SMIC(981) Sunny Optical(2382), AAC Tech(2018) or Hang Seng TECH Index ETF(3033) 

In Singapore, related tech players including AEM, Frencken, UMS

2. Food Delivery: Virus won't go away at least for quite some time, and home office will be the new norm. It's expected food delivery companies will do well. Companies in focus including Uber Tech(UBER), DoorDash(DASH).

3. Online Shopping and Logistics: Amazon(AMZN), Alibaba(BABA, or 9988.HK), Pinduoduo(PDD), ContextLogic(WISH), WISH is called the U.S version of China's Pinduoduo, just launched its IPO on Dec 16, it traded underwater to its IPO price US$24. and also FedEx(FDX) and United Parcel Service(UPS)

4. Remote Working: Zoom Video Communications( ZM), Cisco System(CSCO), Slack Tech(WORK), Alphabet(GOOGL), Facebook(FB), Microsoft(MSFT)

5. Online Education: TWOU(2U), Stride(LRN), 17 Education(YQ), GSX Techedu(GSX), TAL Edu(TAL) New Oriental Edu(EDU)

Hong Kong related stocks: New Oriental Edu(9901), Koolearn(1797)

6. Remote Healthcare: Teladoc Health(TDOC), American Well(AMWL), Veeva System(VEEV)

7. Online Entertainment: Netflix(NFLX)

8. Consumer Staples: Wal-Mart Stores(WMT), Costco Wholesale(COST), Procter & Gamble(PG), or SPDR Consumer Discret Sector ETF(XLY)

In Singapore, related stocks Wilmar.

9. Insurance and Wealth Management technology companies: Lemonade(LMND) Lufax(LU)

10. New Energy Vehicle companies: Tesla(TSLA), NIO, XPeng(XPEV), Li Auto(LI)

In Hong Kong, related stocks Ganfeng Lithium(1772) which is the top battery supplier to TSLA and other electric car companies. 

In Singapore, there are two companies with very unique business thus give them unbalanced advantages: Nanofilm and Credit Bureau Asia.

Macau Casino Sector Expected Further Rebound

Macau gaming/casino stocks seen rebounding from rock bottom after suffered two years loss between 60-90%. Time to consider take some shares.

Stocks such as MGM China 2282.HK, Sands China 1928.HK and Galaxy 0027.HK all demonstrating bottom rebounding.

HK and Shanghai Stocks Hit 7-Year High

Weekly Wrap

STI hit seven year new high for the week, closed at 3472.38--its highest since Jan 2008.

HSI and Shanghai are on strong bull run. Hang Seng scored marvelously 7.9% and Shanghai added 4.4% both hit new high as well. I will continue focusing on both markets in coming weeks. The return from HSI and SSE is much lucrative as compared to our home market.

HK stocks Long Candidates

Stock picks from latest CIti Report on HK shares, Stocks that I prefer from Citi report: These stocks are relatively in low PB

1. 2868.HK BJ capital
2. 1071.HK Huandian Power Intl
3. 1138.HK China Ship
4. 1299.HK AIA
5. 1928.HK Sands China, not in the list. Dividend yield 5.5%, PE 16.8, PB 6

Long Candidate: 1361.HK

H shares are rocketing higher and higher this week.

1361.HK appears another good candidate for long.:

Weekly Wrap

For the week ended 9 Jan. Weekly indices performance table:

STI immediate resistance level at 3365(YEC), support at 3250. It's trading above all three MAs(20, 50, 200ma), thus I'm bullish bias on Singapore market.

HSI weekly chart. Bullish bias.

Shanghai(SSE) hit 3400 last week and formed a shooting star candlestick which is a bearish sign. SSE may have come to retracement in coming week or two weeks, after recent surge. I think it's healthy consolidation to wash out weak holders, market should resume upside after short term profit taking completed.

 Consider iShare A50 ETF( 2823.HK) in HK market or A50 ETF (JK8) in Singapore to capture the bull run in China. I prefer iShare A50 in HK as the liquidity there is much more better.

BYD: Sell-Off Storm

BYD (1211.HK) had its massive sell-off today, its stock listed in HK once dropped more than 40% to 18.7 HKD and recovered to 25 at close. Its Shanghai listing triggered 10% maximum loss limit.

However, company claimed business as usual and said the sell-off is for no reason. Market speculated the sell-off possible due to series of trading stop loss triggered. Good time to pick up?

All Focus on A shares and H shares

HK stocks(H share) and Shanghai stock(A share) price difference become bigger and bigger after recent A share soaring, the H shares aren't following up actually. So the next thing i expected is the H share will be next to catch up. Same comapny if H share is cheaper than A share, which one will you buy? Money will always flow to where it got better opportunities. 
Table for Financial sector hot stocks A/H ratio:

 HK listed broker houses:

 AH banks PE and PB ratio:

Long Candidates HK Stocks

Citic 267.HK

1788.HK so far have fullfilled all the textbook fibonacci levels. Next level is 423% at 8.3, let's see can it go there.

Capture on the Rise of China Stocks

iShare FTSE A50 （2823.HK) tracks China's top 50 blue chips listing in China mainland. It has broken up its multi-year downtrend on super high volume, which indicating further rebound afterwards. Buy on retracement.

Shanghai-HongKong Connect Focus List:

17/11 Mon, stockwatch

It's a big day today for the Shanghai-Hongkong markets. The Connect(沪港通）finally will be start today. Maybank Kim Eng client can trade Shanghai stock at ketrade online. Go to trade--> Quote-->from the markets drop-down list, select SH-HK, then key in stock code in the search box.

H shares: 

1、港交所(00388)

2、长城汽车(02333)

3、友邦保险(01299)

4、第一拖拉机(00038)

5、腾讯(00700)

A Shares:

1、上海汽车(沪:600104)

2、贵州茅台(沪:600519)

3、宝钢(沪:600019)

4、青岛海尔(沪:600690)

5、大秦铁路(沪:601006)

Stock top list for A Shares and H shares:
------------------------------------------------------------------
Infra and Railways construction:
中材国际（600970，收盘价10.25元）、
中国建筑（601668，收盘价4.00元）
中国中铁(601390.SH)
中国铁建(601186.SH)
----------------------------------------------------------------
医药板块 Pharmacy:
天士力 600535.SH
恒瑞医药600276.SH
片仔癀600436.SH
同仁堂600085.SH
白云山600332.SH
威高股份01066.HK
-----------------------------------------------------------------
券商板块 Broker houses:
中信证券（600030，收盘价15.38元）

Guotai Junan (01788.HK)
----------------------------------------------------------
低估值蓝筹:
上汽集团（600104，收盘价18.87元）
青岛海尔600690.SH
-----------------------------------------------------
AH股折价较深个股:
海螺水泥（10.77%）、600585.SH
青岛啤酒（10.22%）、600600.SH
中国太保（9.14%）、601601.SH
招商银行（8.87%）600036.SH
-----------------------------------------------------
特色股板块:
贵州茅台 （600519，收盘价157.29元）
伊利股份（600887，收盘价25.48元）
中国国旅 （601888，收盘价37.90元）
中航科工（02357，HK）
航空动力（600893，收盘价27.07元）
腾讯控股（00700，HK）
金山软件（03888，HK）
金沙中国 （01928，HK）
银河娱乐（00027，HK）
美高梅中国（02282，HK）
永利澳门（01128，HK）

Weekly Wrap

For the week, Shanghai and Hongseng indexes gained the most, buoyant by the announcement Shanghai-Hongkong Connect will be kicked start on coming Mon, Nov 17, finally. SSE hit multi-year high this week at 2508.623, crossed 2500 level for the first time since Nov 2011. The weekly candlestick looks bullish, all ready for coming strong move.

HSI on the other hand, may test 25000 level again in coming weeks.

The US three indexes continued up marginally.

STI gained 29 points closed at 3315 for the week. Have held well above 3300 mark so far. The weekly candlestick looks bullish. It may rebound further with immediate target at 3350.

Shanghai Hongkong Stock Connect Will be Start on Nov 17

It was announced today that the long-waited Shanghai-Hongkong Connect(沪港通) is scheduled to start on next Mon Nov 17.

Hk Stocks related in focus:
基建类：中国机械工程（1829.HK），中国中铁（0390.HK）中国铁建（1186.HK）
基建类应该是首当其冲的受益者，也是目前市场炒的最凶的。

交运，港口运输：中国南车（1766.HK），中国北车（6199.HK）南车时代电气（3898.HK）中集集团（2039.HK）中国远洋（1919.HK）
交运是和基建相辅相成的，因为建设必然会有运输。

传统过剩行业：安徽海螺水泥股份（0914.HK），华润水泥控股（1313.HK），中国建材（2323.HK），马鞍山钢铁股份(0323.HK)，重庆钢铁股份（0323.HK）

Few bullish charts as updated today:

Weekly/Monthly Wrap

World indices react positively and surged up after Bank of Japan(BoJ) announced to expand its stimulation plan on Friday.

Oct 14 just ended, below table shows the monthly indices performance. HSI was the most bullish index, with 1065 points or 4.6% up. HSI is expected to move up further with 25k for immediate target.

Shanghai added 2.3% to CLOSE above 2400, FIRST time in 32 months( since Feb 2012). It's the 6th consecutive month up so far. It's remarkable.

The US three major indices DJI, SPX and COMP added 2.0%, 2.3% and 3.1% respectively. The DJI and COMP hit new high whereas SPX is at its historical high.

STI, on the other hand, is the one and only index closed in red for Oct, albeit little down with 2.5 or 0.1%.  STI immediate resistance is at 3277-3300. More upside is expected IF it can stay above this area.

Hongkong Stocks Bullish Setup

HSBC HK/China Model Portfolio

AIA 1299.HK at Support

AIA 1299.HK appears to me as a very promising long candidate. It retraced recently from high of 44hkd to 40hkd, which is around major support level. Good entry price around 40, with target to at least 44 (10% profit).

HK Stocks Weekly Wrap

1. China LNG 0931.HK (中國天然氣集團有限公司), what a nice run up. Nice chart but run up quite a lot, looks still got upside potential. Aggressive trade.

2. China Oilfield 2883.HK
It did gap up on 27 Aug then was fading off to close the gap thereafter. The gap has been almost close by today. target is at 24.27 if upside run resumed. Big blue chips, may be considered for conservative player too.

3. China TaiPing 0966.HK

A insurance company, with sound fundamentals. Formed triple bottom nicely, retraced back to its resistance turn support at 17-18. Target 24 once upside run resumed. Blue chip, may be considered for conservative player too.

4. HuanDian FuXin 0816.HK please refer to my previous post.

5. Value Partners 0806.HK 

An asset management company. Nice chart, for conservative player.

6. Wisdom Group 1661.HK

Formed a nice double bottom formation. had breakout 4.5 resistance, run up and pull back over past week to test tthe resistance-turn-support level. Further upside is expected if upward run resumed.

7. Wynn Macau 1128.HK

One of the major Casino player in Macau. Sold off badly recently. It's time to pick up and rebound.

Long Candiate 816.HK

816.HK Huadian Fuxin nice uptrending stock, every dip is a buy entry opportunity.