UPDATED - AUG 17, 2018 - FRIDAY
BotTrigger Update & Trade Alert: $BIDU bought the January $250 / $280 vertical call spread @ $4.18 with a 2% allocation stake. This trade stands to make a 518% return upon a test of the all time highs so long as BIDU closes @ or above $280 UPON expiration. Yet our plan isn't necessarily to hold it for until expiration... as usual, we may sell this far before January if price gets vertically north too fast.
MAX GAIN: 518% gain if BIDU is @ $280 or > greater than upon expiration
BREAK EVEN: $254.85 zero value is lost or gained upon expiration
MAX LOSS: BIDU @ $250 or < than upon expiration.
BULLS GAINING MOMENTUM - PLAN TO ROTATE OUR COMMON:
There is such a thing as the waning of selling aggression & the reversal of bullish momentum starting to take over. BIDU exhibited this to us on Wed w/ a strong bullish hammer. The hammer candle bar tells us quite a bit. During this candle’s formation, BIDU ran down quickly, only to reverse. Opened up near $211 and fell to $207 intraday & then entirely reversed the downside, not only did prices reverse, but they reversed beyond the initial opening price closing that day @ $213.47thereby creating the bullish candle. The following day, BIDU printed what's known as an "inverted bullish hammer." U might think that sounds bearish, but not when it's an inverted hammer that occurs near the peak bearish zone of the trend, being the "follow-thru" subject to the Bullish Hammer that occurred on Wednesday, whilst occurring on a GAP UP no less. And now today we have another gap up, again bears trying to sell into the move is fine, but they are losing their selling ability as the bulls accumulate & reclaim the stock. The dips are bought. Behavior is changing down here.
We have a lot of gaps on the upside that will inevitably be filled. At the same time, do not underestimate the shenanigans where we may see a retest of the lows to further test if the bulls are real. I'm betting they are. This is China's Google, not some rinka dink stock.
THE PLAN
If we get a retest of the lows anything under the $212 to $210 area we will rotate out of the common stock in lieu of buying DIM (deep in the money) call options or vertcial call spreads of some kind. I will be modeling both a conservative trade & high yielder targeting a retest of the highs.
ON WATCH
Also on watch for entries: TSLA SHOP BABA ADBE NVDA SQ & AAPL only on the next relative pullback & lastly $HOME is looking really good any moment. Market update after the bell.
AUGUST 16, 2018 - ORIGINAL POST
BotTrigger Trade Alert: $BIDU @ $217.12 for a 5% allocation on the common stock for now. We have a triple bottom setup occurring on BIDU's annual support line which coincides with the original breakout zone or 2016-2017. This bounce is also occurring with a confirmation on RSI & Bullish crossovers ocurrring on several of the momentum oscillators. We also have a very powerful reversal signal showing it's hand on the candle bar formations, yesterday w/ a bullish hammer & then today showing an inverted hammer bar. Both are considered reversal signals when they happen towards the peak ends of a downtrend. W/ Chinese stocks beaten up as bad as we've seen & now $BIDU down -27% from it's 2018 high, we'll take it.