Baidu
Baidu.Inc looks like buy hereBaidu, Inc. provides Internet search services in China and internationally. Value based on a discount cash flow calculation is roundabout $255.
JD.com trading at a blatant valuation discountOne of the trends taking place in my portfolio is an increased weighting in China's technology sector.
Amid the trade-driven pessimism over China, clamp down on digital assets and increased control over online content China's economy is trading at a blatant valuation discount to the U.S.
Within the last few months the BAT stocks Baidu BIDU , Alibaba BABA and Tencent TCEHY have been among the biggest losers.
The recent arrest of JD CEO Richard Liu has caused JD stocks to tumble further relative to its e-commerce peers and is now almost 50% off its 52-week high. I view this as a risk-reward profile that is heavily tilted in favor of the bull.
All indicators explained on the graph
Bullish on the Chinese tech sector, 5 must have stocksSeptember is often considered a tough month for stocks. However, many Chinese stocks have already had a rough year due to escalating trade tensions between the U.S. and China.
By and large, the fundamentals supporting Chinese tech stocks are strong given small penetration rates in a very large and rapidly growing internet market. For the most part, the technicals point to healthy upside going forward.
The following 5 Chinese tech assets are hovering around their Point of Control POC: price point with the highest trade volume and are showing signs of recovery using a number of indicators. We use the China 50 Index as a benchmark for these assets.
Bitcoin Today: Baidu blocks cryptocurrencies themesPrice
Monday went much better than expected and the price broke above Bearish Trend Line at the end of the day. Then BTCUSD went above 6800 resistance and now trading on the 22 August high – 6900. One of the possible drivers for such unexpected bullish behavior is CFTC report about low levels of short positions in the bitcoin futures market (reached historic low at the 1266 contracts point). Now on the way the most important zone for now 7000 – 7300 which also supported by 100-days EMA. A breakthrough above this zone will identify a completion of the turnaround pattern and take-off for the further highs with the main target on the 10000. Still, as the higher part of the turnaround zone, these levels will be holding a lot of selling pressure, at least those, who bought on the bottom now can fix up to 20% (6000 – 7200). For today, 6800 turns into a supporting level and should be strong for the upward scenario, from the above the price will meet a strong resistance during the whole 7000 – 7300 zone.
Today forecast
Trading in the 6800 – 7300 zone.
Latest news
Chinese Search Giant Baidu Joins Tencent and Alibaba in Cryptocurrency Blockade
The Chinese search giant Baidu, following Tencent, decided to distance itself from the crypto-currency topic by starting to censor and ban the crypto-currencies related topics on the Baidu Tieba platform, China Times reports.
"At the moment the company has toughened the attitude to digital currencies and does not allow creating sub-forums on this topic, relying on existing laws and regulations," the source, who wished to remain anonymous, notes.
Currently, the sub-forums "Digital currencies" and "Virtual currencies" are not available and a search for these keywords leads to the message "This forum is temporarily closed due to non-compliance with existing regulations."
"The company will manage its business in accordance with Chinese laws," the representative of the search giant said.
He also noted that these sub-forums were blocked due to the dissemination of information on ICO and speculation by crypto-currencies.
It is noteworthy that many other sub-forums about crypto-currencies such as Bitcoin, Ethereum and others remain available.
The Baidu Tieba platform was launched in 2003 and, according to the company, at the moment its monthly audience reaches 300 million active users.
Latest opinions on bitcoin ETF future
Last week SEC announced that it would be denying nine Bitcoin-backed ETF proposals from ProShares, Direxion, and GraniteShares. In three individual documents elaborating on the verdict, SEC commissioners outlined the fact that Bitcoin markets lack “significant size” and are still subject to widespread fraud and manipulation. While the U.S. regulatory body has since sought to stay and “review” the denial verdict, the SEC’s concerns regarding such a vehicle stay the main concern of many.
Wall Street Journal crypto-reporter Paul Vigna recently appeared on CNBC to discuss his opinion regarding the regulatory state of Bitcoin/Crypto-backed ETFs
Vigna revealed that unless the SEC can determine how much manipulation is going on and from where it will be neigh-impossible for an ETF to hit retail markets:
“The SEC’s concerns are very valid… for a currency that makes a big deal out of having a public transaction ledger, there is not a lot of transparency with exchanges — what’s going on behind the scenes. You can see the price, the transaction but you don’t really know who is doing the exchanges.”
CNBC host Mellisa Lee then acutely brought up the idea of a Bitcoin ETF being a catalyst for markets but noted that such a product goes against the very ethos of decentralization and self-custody. Alluding to the fact that custody isn’t proper ownership of the private keys, Lee added:
“The passage or the approval of an ETF has been looked at by many in the crypto world as the next big catalyst… But there are some in the cryptocurrency industry who look at this and think that this isn’t right, so unless you own the Bitcoin, you don’t own the Bitcoin.”
Drawing his segment to a close, WSJ reporter Paul Vigna provided some insight on the SEC’s role in the cryptocurrency industry, adding that the regulatory body is doing its best to bring cryptocurrencies to the mainstream. He stated:
“I think we’re at the point that good governments aren’t looking at this (crypto) as something they need to clamp down on, outlaw it, or drive it out of existence. They see that there is potential here and we have something that might be able to benefit people… They are trying to figure out ways where they can regulate it, make it mainstream enough so that we can use in our daily lives.”
BIDU Testing Support, Potential Bounce! BIDU is testing its support at 227.04 (100% Fibonacci extension x2, 78.6% & 76.4% Fibonacci retracement, horizontal overlap support) where it could potentially bounce up from here to its resistance at 248.58 (61.8% Fibonacci extension, 50% & 38.2% Fibonacci retracement, horizontal overlap resistance).
Stochastic (89, 5, 3) is approaching its support at 2.9% where a corresponding bounce could occur.
BIDU Breakout Options TradeBIDU chart looks really strong. I think it will see $245+ maybe $250 this week. Notice when the thick red line dips below the band. Breakout soon occurs. Likely to sustain this trend.
Thnx for following.
Wedge Pattern Forming in BIDUBaidu is forming a wedge pattern on its weekly chart, and with earnings coming out on April 27th, right now seems to be an inflection point in the change of the price of BIDU. If earnings come out great, beating expectations, one may see BIDU's stock surge out of its wedge resistance price of $187, during that point, I would put in a long position with a stop right below the new support line which was the previous wedge resistance.
However, if BIDU disappoints in earnings, BIDU might just as easily drop below it's wedge support level of $165. If that is the case, I would probably look to take a short position, with the stop loss being right above the 200 MA price of $175.
Whichever way it moves, I want to be on the right side of the trend. If I had to wager on which side it would be, I would choose the long side. BIDU is a tremendous company with an extremely wide moat. Considered by many to be the Google of China, BIDU has little if any competition with it. The financials look solid and the returns on assets, equity, and capital remain above 10%.
All the best,
RC
Baidu Bears And Bulls Set To CollideOn April 7, 2017, Baidu ( BIDU ) had four daily moving average cross events occur. The stock crossed below the 100, 200, and 250 daily moving averages (DMA) while the 20 DMA crossed below the 100 DMA. All four events have never occurred on the same day before. Also, when all four events occur individually, they do not always result in a loss.
Historically the stock has crossed below the 100 DMA 57 times with a median loss of 6.122% and maximum loss of 25.704%. The stock has crossed below the 200 DMA 46 times with a median loss of 4.269% and maximum loss of 21.444%. The stock has crossed below the 250 DMA 42 times with a median loss of 3.529% and maximum loss of 26.166%. The 20 DMA has crossed below the 100 DMA 16 times with a median loss of 6.459% with a maximum loss of 24.301%. All of this information is based over the next 15 trading days.
When we take a look at other technical indicators, the relative strength index (RSI) is at 47.0218. RSI tends to determine trends, overbought and oversold levels as well as likelihood of price swings. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading declares the stock is relatively neutral.
The true strength index (TSI) is currently -11.6928. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock is down, but slightly trending up.
The negative vortex indicator (VI) is at 1.0275. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The current reading declares the stock is moving down.
The stochastic oscillator K value is 70.2026 and D value is 70.5545. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals and short-term activity. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. The current reading declares the stock just began a reversal.
The 100, 200, and 250 DMA downward crosses have occurred on the same day or within one day of each other seven times. The minimum loss of these occasions has been 1.230%. The stock has also been in a technical flag pattern since August of 2015 and is nearing its apex. The stock will break out of this pattern to the downside on this trip or could possibly break above it within the next three months. If the breakout occurs to the downside, it would most likely occur this time. If the downward break has significant volume behind it, the stock could fall well beyond 3%.
Considering the moving average crossover, RSI, TSI, VI and stochastic levels, the overall direction appears to be neutral and probably heading down. Based on historical movement compared to current levels and the current position, the stock could lose another 2.84% over the next 15 trading days.
BIDU little swing and long-term gain.BIDU have gone through the same 3.5 year pattern twice. Each iteration started with continuous growth.
Currently there is a consolidating triangle pattern, getting closer to an ultimate breakout.
It is highly unlikely for the breakout to go against the upward trend due to the fact that Baidu seems rather undervalued at the moment. P/E is just 12.4 against similar companies 30-50.
BIDU - BAIDU "BINGO"- Trade...From what I have observed, I can see the same happen again.
...but - I'm also aware the the exact opposite could De- Bingo it.
As for now, I wait for a close above the dashed blue A/R line.
But yes, I am very bullish on BIDU.
P!
Contrast Weekly vs Daily Timeframe OBV and RSI indicate a possible bounce to the upside. Keep eye on intraday for continuation downward or break to the upside. If you wanna play both sides a straddle or strangle option strategy two or three months out might be ideal. For a one sided trade check OTM (out-the-money) contracts and the Vol in the options contracts relative to the strike price before purchase - 220 and 125 or 200 and 140 strike price might be ideal. Also don't wait to long to purchases options contract, because as directional price movement becomes more apparent and as Implied Volatility creeps up the more expensive the options become.
Baidu - Swiss cheeseGot my bear boots on this week and Baidu has a heap of holes to fill.
Waiting on how we react into the bear trend line to set up a short... TP144
