I have written a series of articles on Google (NASDAQ:GOOG) and Baidu.com (NASDAQ:BIDU) here on Seeking Alpha. Yesterday, both of these stocks hit new all-time highs! This calls for an update on both:
I last wrote about Google on May 17 , when GOOG stock was trading at around $470/share. I suggested that GOOG's daily chart was starting to look more bullish and might start to move up to catch up to the rallying markets.
As you can see in yesterday’s chart, GOOG has taken off since then, adding on about 50 points. GOOG made a new all-time hight yesterday on very high volume, more than 10 million shares, which doubles the average volume. While I think GOOG has “officially” become a “$500-stock”, and will likely go up higher, a little caution is prudent for the next few days. GOOG has gone up continuously for about two weeks. It might need to let off some steam soon, or at least trade sideways for a bit before continuing higher on the next leg up.
When I wrote about BIDU at the end of April, I talked about the importance of the 130 level for BIDU. BIDU jumped after its great earnings, but couldn’t quite hold on to 130. However, I indicated that because BIDU’s MACD was just starting to rise, it had a good chance of going much higher.
Well, yesterday BIDU closed at 144.64, also a new all-time high! That’s a 20-point rise, or +16%, since the end of April. Its chart is still bullish and shows more room for upwards movements. But, similar to GOOG, BIDU might also need to rest a bit before going higher.