Baidu (BIDU) announces earnings next Wednesday. Here’s your trading strategy.
Discussed in this article: Baidu Inc. ADS ( $BIDU )
I want to look at Baidu ( NASDAQ:BIDU ) today. The company announces earnings on July 24th, that’s next Wednesday. I think this stock is a buy. It’s going to do what it’s going to do in response to earnings but this was such a key decisive breakout, above this series of highs that I think it matters.
If this stock pulls back, let’s say earnings are disastrous, if the stock goes back to 100.00 awesome, if it pulls back to 90.00 even better, if it pulls back to 85.00 even best. Frankly, the lower it goes the more compelling it would be as a buy for me, because this looks like, “Oh my gosh, you’re buying a falling knife.” It’s not really a falling knife; this is a stock that’s been rolling over for quite a while.
But now, based on this low, and then this low, which has actually taken a while to form, and then this break out here, on heavier than average volume, this to me is kind of a sea change and the stock would now be one that you would want to buy on dips as opposed to selling it on the rallies.
So if the stock does pull back on earnings, let’s say the market is disappointed in the earnings, you want to buy it, I don’t think you want to stay away from it. If you look at other Chinese Internet companies, Sohu ( NASDAQ:SOHU ) looks poised for pretty nice run, and they’re announcing earnings on July 29th.
So we’ve got a lot of earnings coming up in this coming week and the following week. So I want you to pay attention to the earnings calendar, but also my bias would be to buy any pullback on up trending stocks.