BIDU May Still Offer an Opportunity

I can't be happier with the BIDU core short positioning, the multiple reversals and head fake moves in BIDU are textbook, except you won't find them in any textbook, this is the market and how it operates now. BIDU has offered so many opportunities and I still think there's another opportunity that is pretty good odds.

As a Core short BIDU is up 25% and it hasn't even really broken down yet, with the profits from the short I added to BIDU recently on this counter-trend rally BIDU just finished, that makes the trade worth even more as it is now paying for more shares, this is the real advantage of being short a stock rather than using an inverse/short/ultrashort or bear ETF/ETN. I explain it all right here at www.Trade-Guild.net under "Resources and Concepts" in the article, "Making More Than 100% In A Short".

I intend to keep pyramiding BIDU as the opportunities become available. However right now I'm looking for the next Put position as the last one was closed for a nice profit, I believe 102% which was entered on price strength (a breakout through resistance) on 8/16 while BIDU was up 2.74% on the day, making the Puts even cheaper, giving me a head fake move with good probabilities and lower risk.

 The price level I'm looking for hasn't changed, we need at least a higher high to get any kind of buying interest-the yellow area is where I need to see price at or above. There's a long legged candlestick on heavy volume providing support, if that support doesn't break, this trade can still happen.

 The short term intraday charts still have enough positive divergences to push to that level and maybe some, the longer term charts make shorting strength the highest probability trade for me.

 The initial core short position which has never been covered even for a day, was entered at the yellow box, actually I believe this position was built in several trades all in that area around $150, we already knew they were selling strength before entering, we just needed a price move up to make the entry low risk.

 We also had a long trade as we expected a counter trend  rally in BIDU at the July lows. The add to the core short was in the second yellow box and the 102% Put was at the yellow arrow, all shorting strength in price, weakness in 3C.

 The 4 hour chart shows all the moves from bearish to bullish to bearish again and leading negative here.

The daily chart shows the 2009 accumulation at the low to mid teens level, then the distribution of those accumulated shares over the 2011-2012 period, BIDU HASN'T EVEN TRULY BROKEN THE TOP, THERE'S INSANE DOWNSIDE POTENTIAL HERE.

So put BIDU on your radar as well for a possible put or maybe a short position with a price alert above the $121.50 level.