BIDU Follow Up (SHORT)

In the initial post last Friday bringing BIDU back up as an add to, to the initial phased in core short position, I not only said we wanted the trade to come to us, that the "Ascending Triangle" (bullish) wasn't there by accident, but most importantly  I showed this chart with what we at that point, the two potential trade set ups, the preferred Option "A" and the second best, Option "B". I also include the commentary following that chart.

"My first choice entry is "A", a breakout to the upside above the $170.78 level, the breakout would usually be quite strong, it has to attract the attention of bulls and convince them that this is a strong move, they are selling a lie, so they must really make traders believe so don't just expect a move to $170.85."

" The chances of a head fake move are very high and that's also where out HIGHEST PROBABILITY TRADE IS."

Today's move of nearly + 5% QUALIFIES, this is exactly what I was talking about on Friday, the move HAS to be strong, otherwise who's going to chase it?

Who's going to question this move coming out of a bullish Ascending Triangle?

 This is the kind of move I was talking about on Friday.

It got the job done as well, these aren't just price patterns to be memorized, it's psychology and tactics that have a very specific purpose (actually quite a few), again if you haven't already, I urge you to read the two articles I wrote and posted on the members' site, Understanding the Head Fake Move" parts 1 and 2; when I put up part 3 it will be examples of different kinds and how they end up.

The purpose here was to bring in buyers or more accurately, to create demand at a higher price. 

What can you do with demand at higher prices when you have positions so large it can take months to unwind them or start new positions such as shorts that are so large, it can take weeks or longer to fill them without giving your position away to other firms or the much dreaded predatory (Ice-berg Pinning) HFTs?

The only reason I didn't fill the entire position is because today's move is very parabolic, parabolic moves tend to end (in this case) badly with an almost equally vertical drop, however, if that doesn't happen then there will need to be a reversal process, the only way BIDU will have a reversal event is a parabolic failure, other than that, probabilities are astoundingly high that a reversal process like the one I drew in will take place as "V" shape reversals are VERY rare.

 So far so good on the 3C signals in to the moves, both the initial breakout Monday and today's move.


I don't want to re-post all the BIDU charts that were just posted days agao, but my point here is most technical traders believe that a move like today IS SMART MONEY BUYING BIDU, BUT WE HAVE SEEN OVER AND OVER AGAIN, BY THE TIME THERE'S A MOVE LIKE TODAY'S SMART MONEY WAS IN THE POSITION LONG AGO.

Above we see where the initial accumulation for this leg was set up, selling in to higher prices in smaller blocks keeps their average price very high without alerting predatory HFTs that ill make them pay for showing their cards.

I'll let you know as always if any further moves are made in BIDU, but this is exactly what we were looking for Friday in "LETTING THE TRADE COME TO US".