• Chart of the Day: Baidu, Inc. (BIDU)

    by  • June 5, 2013 1:52 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

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    Today’s chart is of Baidu, Inc. (BIDU) which provides Internet search services. The company offers a Chinese language search platform on its Website, Baidu.com; and a Japanese language search platform on its Website, Baidu.

    Ticker:  Baidu, Inc. (BIDU)

    What I Am Looking At:

    • Shares underperforming the broader market, down nearly 6 percent year-to-date and 16 percent year-over-year
    • Facing stiff resistance in the form of the descending 200-day moving average, 0 percent year-to-date level, the round-number $100 level, gap resistance, and the downtrend line
    • Shares are breaking down from a bear flag formation
    • Bollinger bands are pinching together, possible indication of imminent explosive move
    • Peak call open interest for the June series resides at the 100-strike, which could add to the technical resistance drivers
    • 10-day and 50-day buy-to-open call/put ratios showing extremes in optimism, both ranking above the 90th percentile of all readings taken during the past year
    • Short interest continues to steadily grow since July 2012, showing the shorts are in control and selling all rallies

    Strategy:  Shorting at current levels, targeting 52-week low

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    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.


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