Tuesday, February 25, 2014

BIDU- Probably one of the Easiest Core Shorts

I have BIDU as a core short/trend position, it may have a little room to add, but not much. BIDU is also currently at a -1.12% loss because I waited patiently to enter and add to it at the right places. I think there's 1 more right place that might become available, but truth be told I'd take it right here as a percent or so is nothing in the bigger picture.

The charts should make it pretty self explanatory as to why I think BIDU is a core short position that is a no brainer.

 This is the daily 3C chart, to know where you are going you have to know where you are, the cycle in BIDU should be pretty clear. We have stage 1 accumulation/base, stage 2 mark up (green arrow) stage 3 distribution/top and stage 4 comes next, that's decline. The distribution signal is leading negative on a daily chart which is about as strong a signal as you get.

 The hourly chart also shows most of the cycle, it also makes the distribution VERY clear, this chart alone tells you why I'm a fan of a BIDU short position.

 On a 15 min chart we are looking for timing, the accumulation/head fake move of 1/27 - 2/5 (thereabouts) can be seen in white, the distribution end of that cycle can also be seen so that's stage 3 for this smaller cycle as well. Stage 3 on a daily primary trend, stage 3 on an hourly intermediate trend and stage 3 on a 15 min short term trend, that's a nice line up as one after another will move to stage 4 from the earlier to the daily. I really couldn't ask for a more textbook alignment of multiple trends for a primary trend trade.


 The 10 min chart shows the head fake/bear trap/short squeeze (the Jan 27- Feb 5/6th) and the sharp distribution ending that cycle.

On a 5 min chart we are leading negative.

Only on a very short intraday chart does it look like BIDU could give a slightly better entry, but again I'd have no problem taking it right here.

 The 1 min has a small positive intraday divergence, I'd guess that BIDU could bounce up to the recent range around $174, offering a little better entry.

The 3 min chart shows it too as well as the distribution of each bounce so you might set an alert for >$172-$173 and consider BIDU.

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