PPR - Baidu, Inc. (BIDU) Pocket Pivot March 10 2011
Surprisingly, despite all the carnage today, Baidu, Inc. (BIDU) quietly flashed a pocket pivot buy point today. However, given the action of the general market and the fact that the Market Direction Model is on a solid sell signal, it is probably a higher-risk proposition to buy shares of BIDU. However, if the market stages some kind of reaction rally or bounce from today's closing levels, BIDU might be worth a trade, perhaps using a 3% stop at today's intra-day low around 117. Some of you may have also noticed volume on Netflix, Inc. (NFLX) that looks like a pocket pivot volume signature, which it is, but the stock did not hold above its 50-day moving average, hence is NOT a pocket pivot buy point on NFLX. BIDU, on the other hand, remains well above its 50-day moving average and closed just above the 10-dma, so technically it is a bona fide pocket pivot buy point. The overriding question, again, is whether the probability of being rewarded on the long side of anything given the general market's behavior currently is worth the risk.
This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.