The 100-day chart re-confirms the current bull trend that BIDU is in, which was signalled on Nov 5 and confirmed on Nov 6th.
Buy/go long on any weakness tomorrow.
$426 is MAJOR support.
I figure the retail numbers will be good enough to spark another nudge up in the S&P this week, and should put BIDU at this very strong resistance level again, the (dum-da-dum-dummm) $443 level.
Again, if BIDU actually can close above this level, mutual funds will add to their positions, retail investors will "fear missing a big move", so BIDU should easily tap $450,
Today's close, at 419, was not supportive to the bull case. However, it did not crash to the 5 day SMA line
on the 100-day chart with daily candlesticks.
What I've seen is when BIDU goes below and stays below that line, it stays pretty bearish.
Frankly its been trading in a range, pretty large range (395-$442), for over a month. I guess that's what it wants to do. (good for those who set up ranged option positions)
all the Momo stocks opened at their 5 day SMA, on their 100-day chart using daily candlesticks. And all bounced up from there.
What a coincidence, huh?
Of course you can't chase any stock, especially when there's a bounce up at the open, but this is very bullish for all the MoMo stocks, including BIDU.
I think the best trade for the MoMo stocks today is FCX.
However, I don't have any success with FCX, so I adding a long on AAPL at the open. (sold the 20 AAPL Jan $410 at $6)
look for today's closing candlestick. If it closes here or higher, I'd say we are very good shape, to continue staying net long.
However, hedge everything. I have 30 short BIDU Feb $430 calls, which are currently up $7k from yesterday, which is driving the $4k gain today in my portfolio.
OK, the closing candlestick was bullish. As I said on Thursday, last week, I was looking for a "double confirmation" of a reversal of BIDU's trend, from bearish to bullish.
this is it.
BIDU might have some resistance on the way up, but TA has confirmed an overall bullish trend.
My portfolio ended up $5k today, and I'm biased for a rise in BIDU, still making money all the way up to $470 (I've sold $460 and $490 calls, as my hedge.)