Having second thought is normal ,but extremely frustrating. As of right now i am having extreme doubt on my BIDU position. i have allocated about $10,000 to this position and it has been cut in half. Driving home last night i almost threw up in disgust with my self over the position. I have broken every single one of my trading rules, moving stops, buying more etc... So now i am left with the question of what to do.
Going to make a list of why to own BIDU and why to Sell short BIDU right now.
Go long or Own BIDU
1. Little or no competition with Google pulling out of china
2. Very good end of year and quarterly report
3. Making a new trading range
4. No insider selling
5. Low shares outstanding
6. Stock split rumor.
7. Above its weekly and daily moving averages
8. Very strong MACD lines on the daily lines
Shorting BIDU
1. Google could work out problems in China
2. Yahoo and Microsoft are applying for Asia search approval
3. It trades at an extreme multiple
4. Has decreasing volume on this new high
5. Decreasing weekly MACD and Daily MACD histogram readings
6. Closed outside its weekly Bolinger Band
7. SOHU is slowly gaining market share
8. A new high was made on the weekly with a lower RSI reading
9. It is extremely overbought.
10. MACD histogram has been slowly decreasing while the stock is making new highs
11. Like any other industry Internet search is going to lose pricing power with competition.
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