Friday, August 10, 2012

BIDU Update-Another I like Short here

BIDU has been a core short position since March/April, I also recently opened Puts in the options model portfolio. Here's the update...
 From left to right, BIDU core short entered on a head fake move higher while 3C was negative, it took some time for BIDU to head lower, but 3C stayed negative and I stayed with the position and it moved as 3C implied. When the bear triangle (descending triangle) showed up, we already saw positive divergences and had an idea there would be a head fake move lower, we used that for some longs on what I expected to be a counter trend move up-not a change in trend, just a counter-trend shakeout and the core shorts remained, we made money by buying the head fake lows and holding for the upside ride. That upside move looks to be ending and the trend ready to re-assert itself, I think we are in the last moments of the BIDU counter trend move higher.

 This 1 min chart is in line, but does leave open a question of whether BIDU makes an intraday or daily move above local resistance on a final head fake move before reversing, "if" it did so, I would want to almost certainly short in to that price strength/3C weakness, "LET THE TRADE COME TO YOU".

There are some VERY recent signs that AAPL might do the same today that weren't there 30 minutes ago.

 The 2 min chart, again, that resistance area I'd be looking for a head fake move above to short in to on a leading negative divergence.

 3 min chart shows something very similar, not seeing the positive for a head fake move higher, but if the 1 min goes positive then the 2, 3 min charts may show the same for an intraday move. This is a VERY obvious level of resistance and the more obvious, the more likely the head fake/shakeout.


 5 min chart leading negative as price is nearly the same.

Ultimately the story can be seen here on the 60 min chart.

I'll set some alerts.

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