Baidu (BIDU) reports Thursday and since there is no fear in the market, speculators are buying at will. A good Apple numbers should take BIDU over 107.50 (obviously they have nothing to do with each other but HAL9000 only knows “tech” as a sector) which could set the stage for a nice rally into the report.
On a side note, I did not mention VMWare (VMW) in the previous post but they also report tonight – expectations for cloud stocks have really dropped since the Equinix guidance a few weeks ago; a lot of the charts look poor, including darling Salesforce.com (CRM). Now the question is, will the lower bar make a ‘surprise’ more probable? The chart says worrisome things but a news event makes charts irrelevant in the near term. That will probably be the most interesting report of the evening as a nice beat could send the stock soaring as most technical traders will have left the stock due to the ‘action. Of course some sort of disappointment will also be interesting to assess.
I am mostly out of this space since the intermediate charts are looking worrisome to me – for example, CRM shows a head and shoulders from mid August to beginning of October, and VMW from early August to “now”. If I had the cajones I’d actually short… but Bernanke has snipped me as he trains his bazooka at bears.
Disclosure: Long Baidu in fund; no personal position