What happens when you mix some Google frenzy with dreams of the unlimited China market? Well, you get Baidu.com. , the Chinese search engine company that just went public Friday at $27. I know nothing about this company but here is a price chart showing the trading in BIDU in 5 minute intervals on Friday. This stock got as high as 151 before closing near 123.
I think we can conclude that "animal spirits" are beginning to recover from the 2000-2002 bear market disaster. But until we see more stock charts like this one I will continue to think that the move up from the 2002 lows has further to go.
I have drawn in price boxes whose boundaries are multiples of BIDU's IPO price of $27. We shall see how helpful they are in the emotional trading that began Friday. For the moment I would judge support in BIDU to be the bottom of its current box at 108.
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