BIDU Update

Late last week I filled out the BIDU short position in the equities model portfolio and started a Put position (I believe Friday) in BIDU, even though I suspected the move up wasn't done because of AAPL, everything had come together on the charts and I don't have much time to pull off these positions so it was close enough for me.

As for BIDU as a Put (quick trade here), maybe we get some intraday volatility and better prices that make it worthwhile, but I think that position needed to be opened last week/Friday or on the open this morning. As for the longer term short position as a core short, I think BIDU is still in a great spot, although any price strength to short in to is a gift.

Here's the updated charts for BIDU.

 The orange area is where we entered the BIDU core short, the yellow area was a bull trap that we used to go long BIDU for a counter-trend move, while still in an overall bearish trend. Now I feel comfortable adding to the BIDU short as long as risk management/position size allows, you know how I feel about the puts, but if you are a longer term options player, then it may make some sense, especially if we get some intraday strength which is very possible.

 Here's the move I warned of Friday, more AAPL, but BIDU was expected to move as well.

 Here we are today breaking intraday support levels and the volume rising on each one.

 I am a little surprised BIDU didn't break above this range first, it would have made for a better head fake / bull trap reversal, the fact we are near support and have seen such large intraday volume thus far makes me think we'll see some intraday upside from here and probably some loitering around the support/resistance level we are at right now.

 The 3 min chart negative on the run up and this morning's opening move, you can see the relative positive from Friday before the move up started.

 The 5 min is leading negative (stronger divergence) at a flat range, this is typical price action for institutional activity, whether distribution (in this case) or accumulation if we were at a low after a trend down.

 The 15 min chart with a positive divergence at the bear trap head fake where we bought (yellow around the dates) and a negative divergence as those shares were distributed, this counter trend move cleaned out shorts and opened the position up for smart money on the short side.

 30 min had been in trend confirmation (green) and then heavy distribution on an important timeframe at the price (trading) range.

The 60 min showing much the same, however the counter trend rally never saw 3C confirm, thus the reason I filled out the remainder of the core short position.

If you are looking at BIDU as a core short, on a daily basis, it is still in very good position as a short, you may want to watch the intraday charts for a better entry, but I'd have no problem shorting it here with a longer term perspective.