Tuesday, August 31, 2010


BIDU Weekly Trend Model

BIDU is one of the stocks that is followed in my private email subscription service.  The above Weekly Trend Model is why.  It reversed LONG the first week in March, 2009 @ 17.26 and is up 356% in 18 months.  As the chart suggests, a weekly close below 73.50 will reverse the model to SHORT.  A weekly close below 73.50 will also break the double bottom formation put in over the past two weeks at 76.00.

BIDU is also worth watching as a bellwether for NASDAQ, the Technology sector and China.  In other words, this is one to keep an eye on for lots of good reasons. 

Past performance is not a guarantee of future results.


Anonymous said...

Hi Allan,
I have just subscribed to your private news letter. I came through Ilene of Philstockworld.
The payment was send through info@giftswish.com and the name on the file may be Donna Bailey.
Please send me the daily reports.
Bhaskar Bhowmick

Anonymous said...

I am wondering if we are still bearish? I still think so.

The market is picking up today!
Wonder how today will end.

A said...

The downside risk in this market is enormous. Now with sentiment turning bullish as the market spikes higher, that risk is even higher.

There is a dominant trend and there are shorter-term trends. These are in opposition, currently. This condition will not remain so and one side will ultimately pull the other side into one unanimous trend and that trend will become our, "Trade of the Year."


Anonymous said...

So you are saying the market could go up, or it could go down?

Anonymous said...

I think Allan is saying that the risk for the market to go down has become more of a risk today.

Is that correct, Allan?

I am in positions that want the market to decline, I am wondering if I should just get out of these trades or wait for the end of the day.

A said...

You don't need me to tell you that, it is a basic premise of trading.

What I can do is identify the market's dominant trend in an objective, emotionless framework from which trading strategies can be developed.

As no doubt you have noticed, I also will on occasion address bigger picture structure that warn of the next major direction or bias, what is possible and if everything lines up just right, probable.

Observing that the market can, "go up or down" is only the beginning.


Anonymous said...

This market looks shaky, beset with difficulties.

I don't trust the long position.

Today's rally is just traders taking profit from the lows of yesterday.

Just my opinion.

Anonymous said...

BIDU looks perhaps to go long on the daily at the close. If that happens and both trend models are back in-sync, together with the good economic news out of China today, BIDU should be continuing it's long trek skyward.

Question: GORO reversed on the daily at yesterday's close?

Anonymous said...

what is wrong with NNVC
went up to 1.12, and close at 1.06, disappointing ...

Anonymous said...

yesterday bullish sentiment was 20%
the lowest since March 9 2009.
perma bears are gonna get crushed
in the months ahead..you have been
warned. the bull train has left the
station with the least amount of

Anonymous said...

You are right Anonymous, it will turn bullish violently, and stay that way until the manipulators decide otherwise. This market is not like 1932.

Anonymous said...

I cant say what will become the 'trade of the year'
but I am certain that the 'Question of the year' ought to be something like

"How do you identify a rigged market?"

From a technical analysis standpoint,can it be seen ? In relation to the disasterous fundamentals ,can it be seen?

Can you see when the plunge protection team is pulling the strings?
Can you see when the new normal is being engineered?

Could this kind of manipulation,on a global scale, have been accomplished in 1930,when Ralph Elliott was crafting his theories?

Thats the question of the year, the decade, the milennium.

Maybe the best question after this is the question of

What stocks or investments are simply the safest things of value to own?

I.E. rather than watching the index charts go up and down,and calculating which direction is the right trend..... folks need to be examining which stocks to own ,for their value,no matter what happens with trends and wave structures and predictions.

Own something that will retain its value no matter what.

Would that be gold and silver and platinum ?
and the miners?

Would it be oil stocks in the advent of war?

Agriculture stocks ? water stocks ?

would it be the USD ?

would it be real estate, land parcels...and in what country?
not in Brazil,apparently as of this current moment.

but where.
Doug Casey likes Argentina.

Owning things that will retain their value.
and staying in alot of cash to buy more value stocks at the bottom.

Buying BIDU where its at now would be risking disaster in my view.

If it corrects to 40 and holds there may be ok.