BIDU Update

Yesterday I added September BIDU $130 Puts as BIDU broke above resistance to make a pivot and more importantly, most likely the false breakout or head fake move that the pivot represents, thus far BIDU is down -0.84% today and the Put are up in the green, not a lot, but 5% is a start.

 Because the last nearly 2 weeks of trade were so lat, they formed a VERY obvious resistance zone, the more obvious the resistance, the more stops and orders that pile up just above it, the more that happens, the more likely the area will be run for those stops and orders for a number of reasons which include volume rebates, shorting strength as I did yesterday or selling in to it, and the snowball effect of all the longs all of the sudden at a loss; as the loss grows deeper more supply hits the market and you get a snowball effect-this is partly why markets fall faster than they rise.

Today's VERY EARLY daily candle is a "Dark Cloud Cover", which is a bearish reversal candle, a move below former resistance (now support) should set off another wave of stops and start BIDU on what would likely be a fast and hard fall.

 Look at the volume created on the BIDU move, this volume alone benefits everyone on the Wall Street side from your broker to the market maker/specialists to the clearing firms and others as large volume rebates add up; not to mention the tactical advantages gained in such a move.

 BIDU 5 min in to the open

 BIDU 10 min

 BIDU 30 min big picture and the clearer the institutional trend/action (I usually use yellow to denote a head fake move, they'll always be around an important support/resistance level or a break from some obvious, well known price pattern).

The 60 min showing BIDU's bearish descending triangle with a head fake break below it that we knew about in advance as we expected a counter trend move such as we have seen in BIDU, this looks to be another head fake move as we are now leading negative to new lows on the 60 min chart which is the most important of this entire update.