March 25 - BIDU BIDU BIDU

Wow, this is just incredible. BIDU is up almost 6 fold since its bottom early 2009 at around $100. The long-term weekly chart is shown here:

This has gone from a buy to crazy panic buying frenzy! I don't like how fast it's going up, it's unsustainable!

I'm looking for downside here, but I can't tell when the downturn will begin and that makes buying puts a little harder. One thing is for sure that once this bubble bursts (in the short-term) there will be down side, and it will come fast! Below is the daily chart:

I'm going to start selling calls here for JUN 800 level. Today I sold some for $4.00/share or $400 per contract. I expect that this stock may climb more as more bad news about Google's battle with the Chinese Government hits the wires. So I expect to sell more calls at a higher level.

I expect that the uptrend will break to the downside with the slightest favorable news for Google. More on this soon...