Baidu.com (BIDU) Opens Below $300, Now Hovering Near it

I mentioned yesterday that Baidu.com (BIDU) is my 'psychology' sentiment indicator in this market and I'd like to see how it handles $300. Well late yesterday it hit $301 and bounced; but today it has started the day below $300, and has now bounced back to that level. Still too early to call any trend as the day is very young but a close below $300 begins to make me even more wary about near term prospects. I will also keep an eye on Baidu's sisters in speculation, Research in Motion, Apple, VMWare, Google, Amazon, et al for signs of weakness. As they go, so goes the market speculative nature.

Baidu's 20 day moving average is about $295, which the stock appears to have bounced off as traders rushed back in (the stock hit $360 yesterday so thats a 18% loss in about 4 hours), and it shows you how far away from any meaningful support these stocks have gone to. Could this simply be the pause that refreshes in these individual names? Certainly. However this is the first time some traders have taken any type of loss in these names in over a month so it "could" affect psychology. Let's watch and see. I remain cautious, and willing to miss out on some near term gains in staying in a more conservative stance than I've been the past 3-4 weeks.

Long Apple, Google in fund; no personal positions