Just a little lift and color ...

The indexes got a little lift and color change today.  Yesterday the talking heads were pontificating pullback and today they were caught leaning the wrong way.  Figures.  The only thing you can really count on is DrJ will have a pump -n- dump when he's on Fast or Half Fast.

Revenge

Use non-toxic paints. Someone will lick this off.
(Hope it's the neighbor.) 

What goes down comes back up ... sometimes.  Choppy markets are difficult to trade.  If you prefer to hold for longer periods then ignore the chop.  Check your weekly charts and if the stock is still moving your way then don't sweat the wiggles and gaps in the daily charts.  If you are a short term trader then consider trading smaller or take advantage of this time to get other stuff done.  A trending market is less stressful to trade.

Tuesday Morning - BIDU

Gator's Chart of the Day: BIDU

Baidu reported earnings after market and they beat by a penny (1.32 vs 1.31 expected) but the stock sold off hard and the last I saw was a trade at 100.90 which is just below the 50 day sma.  This could be a good bounce trade but it may not happen at the open.  I think this one will have quite a bit of selling pressure early in the session and it may take an hour or more to complete.  The stochastic shows the stock has been under distribution and weakening for a couple of weeks.

The trade 
I think it may be better to use a 5 or 10 minute candle rather than 3, 2 or 1 minute to find support and make an initial buy.  I would not be particularly quick to add on this one either.  If the stock holds the 50 day sma I think there will be several days of upside price movement so patience will be important.  If the price falls more than a few pennies below the 50 day I'll pass on the trade.