Baidu’s White Knuckle Ride

Originally Published in Charting the Markets October 12, 2007 9:00 AM

J.P. Morgan’s intra-day move yesterday to cut Baidu’s (BIDU-NASDAQ) third-quarter revenue estimate pulled the rug from under this and the other Chinese stocks. A correction was overdue, but you never know what will trigger it. J.P Morgan pulled the plug around $360, and called pull-backs a buying opportunity. Before you pull the trigger you might want to consider Credit Suisse’s comments this morning, which believes a slowdown due to various government initiatives, including the 17th Communist Party Congress. Which could leave shareholders seeing red.

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