The Hang Seng Index opened at 14,902.34 yesterday, roughly 1000 points down from the previous day’s close.  Weakness was evident throughout the day as it slipped 500 points further at a low of 14,584.  Everything however changed in the last hour of trading in the afternoon as a decisive rally sent the index up 800 points to close at the high of 15,230.52 paring its losses down to 767.78.  Some traders may see this rally as a bounce from the retest of the low last October 10 which made a bottom of 14,400.  Turnover was higher at HK$64.3 Bil, up HK$12.1 Bil from last Wednesday.

Recommendation: Aggressive traders will opt to buy this market, especially those who were able to take profits from past two days’ worth of gains, staying sidelined in cash until the double bottom came for their money to work again.