As the markets have faded back to the flat line once again today, many key stocks are in motion and moving. The trade setups are there, the profits flowing.
After a recent sharp up move, Baidu.com, Inc. (NASDAQ:BIDU) is seeing a swift decline today. The stock is trading at $136.44, -5.21 (-3.68%). Just yesterday, the stock hit a new 52 week and all time high at $143.48. This fall looks to be mostly driven by profit taking on recent gains and should find support around $132.75 in the short term.
Cisco Systems, Inc. (NASDAQ:CSCO) is finally seeing some solid upside. Months after disappointing investors with some ugly earnings, it appears Cisco Systems has found a bottom. The $17.00 level held beautifully and today Cisco is trading at $17.94, +0.72 (+4.18%). This may be a longer term bottom in place and after some consolidation, Cisco looks like a long trade.
The markets continue to hover on the flat line as distribution takes place. Institutions continue to sell into the buying of the retail investor at the start of the quarter. This explains why each of the first three days of the week has seen upside fade to the flat line. The retail investor bids the market up, the institution sells into it, pushing it back down. This is classic distribution.
Silver and gold had solid gains earlier today but have both faded to the flat line with the markets, despite a sharp drop again on the Dollar.
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