BIDU

Monday I was pounding the table (as a member called it) over BIDU short, Friday of last week many of us entered Sept $130 Puts which I closed yesterday for a +102% gain, I still have September Puts at a $135 strike up 58% today and the core Short position in the Equities model portfolio that was entered around $150 and I recently added to that core short to fill the position out.

That being said, BIDU still is in a decent place, especially for longer term outlooks, but even probably decent as far as even a Put position which I have a much higher timing standard for.

 This is the big picture, the 30 min chart going deeply leading negative as BIDU makes the head fake move before the reversal, this makes the 3rd trade in BIDU (2 short and 1 long) that we entered on reversals right at the head fake move that preceded all 3 reversals, giving us the best entry and the least risk.

As you can see by the small red arrow, BIDU is close to gap resistance today.


 The positive divergence sending BIDU up on this move we first talked about yesterday, reaches out to the 5 min chart, but as you know, divergences start on the fastest charts and make their way to the longer timeframes as they become more serious.

 So looking at the 1 min chart we can see that the positive divergence in BIDU sending it higher today is already starting to see distribution or selling/short selling in to price strength, the same theme I have talked about all day. You can wait for the next update or watch price, but ultimately, BIDU isn't far off the head fake move and it should move in my estimation another 50 points lower when all said and done.

Here's the next timeframe, 2 min, there's no migration of the divergence yet, but as it does, I'll bring it to you.