Skip to content

NASDAQ:BIDU trade post-mortem

October 18, 2011

Despite having a trading plan for Baidu (NASDAQ: BIDU), I sold and exited my position for the following reasons:

– market context: Trend day to mark the first day of a sell off / pullback

– Baidu gapped down and could not recover above yesterday’s open

– inability to reach 139, or even Friday’s hi.

– Baidu is overbought on the daily chart

I gave my trade the benefit of the doubt by not selling the opening gap down.  But the inability to recover above the open, and the ensuing weakness led me to sell.  I believe Baidu is preparing to fill the gap.

I will look to buy back between the gap fill (133) and 131.

Advertisements

From → Uncategorized

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: