The estimate for the quarter was .71; and BIDU came in with .87. The conference call is tonight at 8:00 EST. But the stock, which closed at 261, traded down after earnings to 242 and up to 297 and is now trading at 274!
This stock shows the fragility of the bulls confidence or the games of the desperate shorts! I think it's a combination of both! But that's why you can buy First Solar the day before earnings and make 50 points. Or buy BIDU this morning at the open at 240, after three brokerage firms suggested a better opportunity would be after earnings, and make 50 points in a day. Maybe brokerage firms feel it is better to pay up for a stock, or that their short clients need to cover.
But there are now cracks in the confidence of the bear's bravado. It's showing in the momentum stocks, which are getting their mojo back. Anyone notice that RIMM (96.76) and APPL (129.40) tacked on five points apiece today? You had the bottom of these stocks Friday:
So pick up Apple (AAPL 121.24) which today traded 75 million shares, and traded down to a low 117.27, 86 points off of it's high a month and a half ago. If CSCO trades up on tepid guidance, AAPL can trade up from here, at least to the 137 level where it found buyers after it reported earnings two weeks ago. Research in Motion (RIMM 84.95) is down 52 points from it's 137 high. Like Apple, it corrected over 40%! Give me a break. Does Wall Street think there won't ever be a growth stock buyer again?Both of these stocks have made beggars out of the buyers. Now they are begging to be bought. Buy both of them!
What the action in these stocks show is that buyers are finally getting emboldened as bad news is already reflected in current prices. So you can fret about the news and the economy, or you can make tremendous sums of money on the bargains tossed, thrown, shorted and puked up by the hapless money managers and fear mongers.
So get out the rose colored glasses! They're what the bulls are wearing on Wall Street. And with just 36% of the bull-bear ratio being bullish, you won't have much company. But who needs company when you have conviction?
Buy em, and buy em big!