Do you see that bottom in Baidu (BIDU)? Me neither. (August 11, 2015)
I want to look at just a couple things on Bidu ( NASDAQ:BIDU ). To say this is going down further is kind of stating the obvious. I’m looking at this and I certainly don’t see a bottom. You can look at this stuff and all that, but if this is moving you then you haven’t really been looking at charts very much. This is a stock that is going lower.
You zoom out here; it’s had these drifts before. “Well that doesn’t look bad Dan.” Well let’s look at this here Horshack. From top to bottom it was only a 50 percent haircut. I don’t need to go back over here, this was 2008, and everything was dying. This has already taken a 30 percent haircut. I say it’s got further to go. I say this is not the best short entry, though I did short the stock today. It’s not the best short entry; yesterday would have been the best short entry as it turns out.
I see this stock having so much downside momentum and no signs of real buyers. You could say, “Well yes, this was, this here.” I think they probably reported earnings. Well great! Well that lasted a good long time, didn’t it? Right now the stock is only up about 4 percent above this major reaction low here. If you want to short the stock, great! You can be in it with me, it’s all good. Like I said, not the best entry. I just don’t know if it’s going to get up to 190.00 to give me a better opportunity, if only.
China’s economy is really weak. If our economy was really weak all the search engines are going to be having a little bit of a tough time too. As it turns out, well Google ( NASDAQ:GOOGL ) isn’t a search engine anymore, not really, they’re doing okay. Facebook’s ( NASDAQ:FB ) not really a search engine, but that’s kind of doing okay. But then when we go to China, suddenly, well that’s not. So guess what people who are investors and they’re looking to invest in Internet companies, guess what they’re doing? They’re buying Google ( NASDAQ:GOOGL ) and Facebook ( NASDAQ:FB ), they’re probably not buying Bidu ( NASDAQ:BIDU ).
So my suggestion is, you need to consider getting out of this stock. If you’re still in this from higher levels and you’re thinking like, “Oh well this was the bottom. I bought it here, I was really crafty, it looked like a bottom to me and it was.” Good for you. What I’m telling you now is, that bottom is now being threatened. The bottom line is this, a lot of bottoms here. You don’t want to wait for the next one.
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