Baidu is Holding up Well Today
Yesterday I thought about shorting Baidu at $318. I am glad I didn’t do so. Baidu is holding up above that price and didn’t follow Google dropping. I guess traders are waiting for its earning report on Jul 23rd.
I traded again today I was tire of watching. And I lost again. I short Bank of America at $13.30. It went up to $13.47 after that. I covered it when it fell back to $13.33. It kept falling after I covered it. I shorted it because its earning was not a good one basically. It reported profit only because the big gain on selling stake in China Construction Bank. The gain was more than 5 billions instead of 2 billions that I guessed in this post “Bank of America Earning Forecast and Financial Statement Analysis”. If the gain was 2 billions then Bank of America will show 1 billion lost as I was expecting.
Seems to me Bank of America will report no profit or will report loss for the coming quarters. I kind of think Bank of America will keep falling starting from here. But again I don’t trust my judgment.
Here is the trade today and balance.
 Transaction 2009/07/17 |
 Account Balance 2009/07/17 |
Account Balance Changes: -$50.33
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It’s a good analysis of BAC, but you looked at BAC in a vacuum. If you took a look at GS, JPM, and C, all of them had record profits for this quarter and all of them went up (though C fell back down). When the worst of breed, C (should be your target if any), reports a substantial increases in business that should tell you there’s too much strength in banking in general to short BAC (a solid and consistent performer). It might be worth while to check the Banking Indixes next time to see how that industry is doing first.
Thanks for the comment!