BIDU: This Is NOT a Bull Market!

Late February, 2009 ...
Mr. Perma Bear: "I hope that you're shorting the crap outta this stupid market!"

Mr. Trend Follower: "Actually, I just bought the Ascending Triangle breakout in BIDU."

Mr. PB: "You're joking. This is a Bear Market, you IDIOT."

Mr. TF: "Well, not according to this chart. BIDU not only broke out to the upside, it looks like it just transitioned into a Bull Market."

Mr. PB: "Fool! Just wait. The market is going to crash and burn, sucker!"

Early March, 2009 ...

Mr. PB: "See, wud I tell ya! The SPX just broke below its November low. Are you still long BIDU, that piece of crap?"

Mr. TF: "Yep. I'm down a little on it, but it's holding up very well with the market at new lows. I'm going to stay long."

Mr. PB: "IDIOT! You're going to get killed, and I hope that you do. I'm short BIDU, and I'm staying short until it crashes and burns!"

Late May, 2009 ...

Mr. TF: "Gee, I hope that you're not still shorting BIDU. It's had a terrific run, and it just broke out of a third pattern, a Symmetrical Triangle."

Mr. PB: "You're a complete MORON. Yes, I'm still shorting BIDU and I've added to my shorts all the way up. I can afford it. This is only a bear market rally!"

Mr. TF: "Oh, okay. Good luck!"

Late, July, 2009 ...

Mr. TF: "Hey, how are you doing? I just sold my BIDU at the $347 Symmetrical Triangle target and made a nice chunk of change. I hope you're doing okay."

Mr. PB: "I'm still shorting it. I have all the time in the world for this piece of junk to crash. I told you, this is a BEAR market!"

Mr. TF: "It is? Gee, I guess I'll call my broker and give the money back. I don't feel right taking the money if it was only a bear market rally."

Today is my birthday, so you will forgive me having a spot of fun with that little spoof, but we sure can fight Ms. Market, can't we? I swear that I've been reading things akin to that dialogue for months while we've been looking at many, many charts that have had rallies similar to that of BIDU, and some with gains even better than this one.

As crazy as it sounds, despite the huge gain that BIDU already has had, and despite the fact that we were on Day #13 of the rally in the NASDAQ, I still tried to buy BIDU on Friday's gap up opening on very good earnings since 347.01 still was IN PLAY.

I put my order in at 336.10 just before the open, near the BID...ASK indication. My order turned out to be just above the 335.87 50% retracement of the gap, which is where I wanted it and which often gets hit, but I didn't get filled this time. Curses! The low was 338.08, then BIDU went on a screamer, so I cancelled the order when it was gone on the upside. The Symmetrical Triangle target of 347.01 got MADE (where I would have sold) on the way to a high of 363.30. What a steady rally BIDU has had, with several nice consolidation/bullish continuation patterns along the way!

Since it's also on the order entry sheet, I made some on my initial play of ESI, but also gave some back on my re-entry. Gain: $250.