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Tuesday, April 1, 2008

Bookkeeping: Taking Profits in Baidu.com (BIDU)

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Some nice action in a few of the top tier tech stocks of late as we've been mentioning. I am still in bear market rally mode, but willing to change on a dime if need be. On a purely technical basis I am cutting out a layer of Baidu.com (BIDU) here as it just hit its 200 day moving average of $260, and is up near 9% for the day. My strategy is purely technical; I will buy these shares back either (a) lower - if this is a failed rally or (b) higher - around $280 - if this is the start of a new surge.

Going of "my" playbook, I am selling as the stock hits a key resistance level.... this stock has actually been a very good trading position for the fund, as I've been able to churn some good profits off of it on a very predictable trading pattern, while being out of the position during its major swoons. Today's sale reduces my exposure down to 0.6% of fund.

Long Baidu.com in fund; no personal position


3 comments:

praveen said...

Mike,

I was wondering why ISRG is not in your portfolio of high flying tech stocks.

No competition, great product, good outlook. Though rich valuation at these levels. But the stock did hit 260s last month.

Just thinking!

TraderMark said...

I've owned it on and off many years.

I was waiting for a gap to fill (in the $250s) which it did on March 10th but I just missed it with so much going on. Simply missed this one, but it was one I wanted to add. Valuation has always been an issue with this name...

praveen said...

exactly I was waiting for the gap to fill. With this market, I lost focus on this one and missed an easy $70 move.

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