Rolex annually makes 700,000 watches, Bioul says. Growth markets in China and India helped cushion the company against the Swiss franc's overvaluation against the euro during this summer's currency crisis, he says. A Goldman Sachs Group Inc. report in August slashed Swiss growth forecasts for next year to 0.6 percent from 2 percent. On Sept. 7, the Swiss National Bank decided to cap the franc's rate to protect trade.

"We're still doing well in Europe and North America, even in a global economy that's difficult," says Bioul, who joined Rolex in 1993 after helping manage Mark McCormack's London-based sports marketing company International Management Group. "Rolex has never been pressured by time, but we pride ourselves on being able to change with the times to ensure growth in a dignified manner."

Eoin Treacy's view Demand for luxury goods has grown considerably over the last decade. Exclusivity is a precious commodity among newly affluent middle classes as they attempt to distinguish themselves from their neighbours. Luxury brands offer the perception of refinement which is so desirable to those new to the high disposable income bracket. The world beating economic growth of China and increasingly India and South East Asia has helped support bull markets in this sector.

Until July there was a high degree of commonality in the luxury goods sector. Over the last two months that uniformly bullish attitude has changed somewhat. Companies such as Polo Ralph Lauren, Essilor International, Tiffany, Burberry and Mulberry have lost momentum but remain above their respective 200-day MAs. Remy Cointreau has perhaps the most consistent uptrend in the sector. Hermes has become quite overextended relative to its 200-day MA as speculation continues to mount on a takeover.

PPR, Luxottica Group, Christian Dior, Swatch Group, LVMH, BMW, TOD's, Saks, Coach and Compagnie Financiere Richemont broke downwards in August and continue to range below their 200-day MAs. Sustained moves above their respective trend means will be required to indicate demand is returning to medium-term dominance.