Good China, Bad China

After YHOO earnings, BIDU is down more than 3% as I write this, with its own earnings scheduled for July 28th.

China names, on the whole, have been a mixed bag lately, with BABA attempting to base out and convincingly leave the $80/$81 area in the dust as support. Moreover, as we have been profiling for Members consistently, two of the better China names have not been BABA or BIDU, which are very widely-watched, but instead have been WB an YRD. Both WB and YRD continue to sport impressive charts for momentum long players, though a few days of resetting would be welcome, too. 

Regarding BIDU, the updated daily chart, below, displays a textbook short setup. Earnings are a risk, of course. But the point here is that there are much more enticing China plays worthy of attention on the long side than Baidu and all of its apparent issues. 

Speaking of a mixed bag, we are also seeing the same dynamic in the oil patch. I will cover this in detail in my usual Midday Video for Market Chess Subscription Services.