AMZN vs BIDU
Many people say a rising tide lifts all boats.
On the other end it’s interesting to see that
when boats start to sink, they all sink together.
Today the whole market is starting to show some
serious weakness.
Take a look at Amazon.com, Inc.
(NASDAQ:AMZN) and Baidu, Inc. (Nasdaq:BIDU)
both are showing signs of selling.
Yesterday: Both stocks had bearish topping tails.
Today: Both stocks have a bearish engulfing pattern.
And they both are showing weakness on the Acceleration
Deceleration Oscillator.
Take a look at these two charts and see if you can
identify the similarities and the differences.
An interesting thing I just noticed is the difference in the locations of the means (averages). Notice the majority of AMZN’s share distribution is lower then that of BIDU’s. To find the mean look for the red horizontal line between the two yellow horizontal lines on the light blue volume profile.
Micah,
Does the action in these two stocks today have a lot to do about what you pointed out above. I’m not familiar with using the locations of the means as an indicator? Any info would help.
Thanks!
@Jharwood21,
Great question. Many times a stock will gravitate towards it’s volume mean as that is where the most amount of volume was traded in the past. Funny thing is, using that idea… BIDU would be down and AMZN would be down today too… Today, BIDU did come down towards it’s volume mean but AMZN bounced off the 200 level. This is a great topic to be covered in more detail in the weekend update.