Baidu (BIDU) Chart Looks Good

In a reply to another stock I was posting about on elitetrader.com I received another idea for looking at Baidu (BIDU).  I’m attaching the chart below to show how I have drawn the chart.  BIDU closed at 125.24 yesterday, off from its highs following earnings announcements.  I see three possible (if not imaginative) trend lines that all meet at 120.  That’s where I’ll be setting an alert to really start watching BIDU even more. 

BIDU killed earnings and revenue estimates at the end of April and should be good long term with a PEG of only 1.06. 

Click on the thumbnail to see the chart:

Normally I’d go ahead and put a limit in for a stock that looks promising fundamentally and has an interesting chart like this, but for today I am going to wait.  I try to sell puts that expire 1-2 months out and now have all but three expiring in June already.  That’s seven options for June and three in May.  I’m getting lopsided which makes it harder for me to juggle what I trade since I work full time.  I’m going to limit my trades for the next week or so and then start aiming for more July options to trade.  I’m 158% invested (if all puts are assigned and all calls are not called away) and usually aim for 200%.  I’ve been treading lightly with my ever increasing fear that we are due for a correction.  If I can hold off for a better opportunity I might be able to get back to having half my positions expiring each month.  In a short pull back, like in February 2007, having my portfolio split over two months kept me from taking big losses.  In a longer correction I’ll just pay the price for getting spread too thin and that’s what I’m trying to avoid.