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

    by  • December 21, 2012 11:32 am • Charts to Watch, 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.jp.

    Ticker:  Baidu, Inc. (BIDU)

    What I Am Looking At:

    • iShares FTSE China Index Fund (FXI) has been outperforming since broad market mid-November bottom and up 16 percent year-to-date
    • BIDU is also up nearly 16 percent from early December low
    • On a year-to-date basis shares are underperforming, down more than 14 percent
    • Currently facing resistance with the $100 century level
    • On a technical basis, shares remain in a short-term descending channel
    • Declining 40-day moving average providing resistance, all other moving averages stacked and trending lower
    • $110-115 resistance zone based on Volume by Price
    • Short interest has risen nearly 100 percent since July and represents just over 3 percent of the float
    • Nearly 9 days to cover
    • The 50-day buy-to-open put/call ratio ranks in the 92nd percentile of readings taken during the past year, indicating an extreme in pessimism
    • 11 out of 15 analysts rate shares a “strong buy”

    Strategy:  Lot of crosscurrents in BIDU as pessimism continues to build, no heavy lean as trend remains firmly down

     

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    About

    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.

    http://www.schaeffersresearch.com/

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