SSS - Baidu, Inc. (BIDU) Possible Late-Stage Failed-Base Set-up

Published : December 15 2010 at 13:55 ET

Keep an eye on BIDU here as it breaks down through the 50-day moving average on what may be an initial late-stage base-failure. Gil already shorted this around the 106 level and covered under 102 for a quick tag, but now we are lookiing for a rally back up into the 50-dma at around 104-106 to put it out again. Late-stage breaks tend to have an initial breakdown thorugh a prior breakout point and/or the 50-dma on heavy volume, then a snap-back to the 50-day line which can be very shortable. Short this in the 104 area or higher, using the high of today at 107 and change, roughly, as a quick guide for a stop. No guarantee it will be able to rally back up to the 50-dma however, but that is what we are looking for. Having traded it once today, it definitely has a weak feel here.




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