BSC_Daily report 14.01.2015_Opportunities may appear in the lagers

The correction in the bank stocks and some blue chip is going to happen sooner or later, because due to profit taking after strong rallies. Instead, the cash flow today has shown signs of running into the Midcap and Penny groups, creating opportunities for these stocks, especially in the attractive price ones which have not increased much. However, in the long-term perspective, the market will still need new pillars to maintain its momentum (these can be still bank groups, or replaced by other blue chips ..).

Recommendation

We have recommended investors to increase the stock proportion at the declines in previous reports. In the future, opportunities may appear in the lagers (which have not increased much compared to the general market), but the large stocks performance is still essential. If the “pillar shares” can alternately rally, we think it would be safe for investors to hold stocks.