Google, Baidu: New Catalysts Pushing Internet Stocks Higher

The last time I wrote about Google (GOOG) and Baidu.com (BIDU), I thought it was time to wait and see if there are new catalysts to push the Internet stocks higher. After the Feds meeting last week, the markets have been consolidating for the past few days. But, with a sudden turn yesterday, it looks like they are ready to move up again, as the DOW made a new all-time high, and the S&P 500 secured a new multi-year closing high. It might be time to revisit GOOG and BIDU, again.

Yesterday, GOOG jumped over 3% today as it announced plans to revamp its search results. Regardless of whether these new plans actually improves Google's core business, they seem to have renewed interests in Google's stock. As a company that makes billions of dollars every quarter, its stock has not really participated in the recent market rally.

GOOG's chart also shows a more bullish picture after yesterday's jump:

GOOG closed at 472.61 and is sitting above the 10-, 20-, and 30-day MAS! The buying volume was high yesterday, and, the MACD has just turned up.

Now, if GOOG starts to move up, maybe its Chinese counterpart, BIDU, won't sit idle either. BIDU has been negotiating with a resistance at 130, and, did make all the way to 134.75 just two days ago. Yesterday, it closed at 129.75, knocking on 130. Perhaps it's time for BIDU to try breaking that 130 level and move higher.