Charts of Interest

Bidu the Chinese Google

With China's economy booming and holding a good portion of U.S. Debt. It should be logically that there internet traffic should rise as consumers use innovations in search to make ease of day to day issues. Over the long term this leads me to believe that as consumers move over to a mobile internet solution that will be provided by the wide spread adaptation of smart phone usage. As can be see by the following charts, Bidu is poised to make a significant move in one of to directions and I believe it is headed much higher....

Bidu Hourly

Bidu Daily

Bidu Weekly

The wonderful would of Google

If you are reading then I am sure that you are familiar with the internet giant, Google.  You probably found this blog by googleing some search term that was relevant to this post. Although search is the core business that generates revenue for Google, there are may things that are in the short term pipeline that should increase there margins Ill save the things that go own behind the scenes of the curtains at Google for a later post. But looking a the chart one could see that though they have weathered a couple rough weeks they still have a ways to go to the upside.... So what caused the last pullback? Was it the threat to pull out of china, or the law suit from the Italian government, or was it the fact that Iran banned them from the countries internet? While I believe that these facts may have played some part in the recent decline I believe that it is mostly just technicals. With that said I think that Google is now prime for a averaging in type of buying style. I would consider buying anywhere from here to the 500 dollar mark with 498 as my stop. 

Goog Hourly

Goog Daily

Goog Weekly

And for the chart of most interest!!!!

So what do we have here. We have bidu which is in the emerging market of china that has a population of like two times the U.S. and we have Google which is doing quite well relative the the SnP 500. But in this market plagued with low volume and high volatility, I believe that no matter how you feel about one it is obvious that the other would make a good hedge. Take to day for example. The Dow opened down 100+ points. Google has retraced its way back to yesterdays close and Google is fighting its way through all the resistance. If you are going to trade these volitie stocks I think its good idea to hedge urself against adverse conditions that could wipe out your portfolio. With that said take a look at this chart. It shows the relationship of bidu minus goog. And Should you trade it right it could prove to provide a nice percentage gain in return....

Bidu-Goog