BIDU, GOOG, AAPL Sync Trading?
Found this interesting and wanted to post it up for you to observe and analyze for yourself. It seems that Apple AAPL, Baidu.com BIDU, and Google GOOG are all trading in sync with one another, especially over the last several weeks.
The moves from September to October are all identical, followed by identical drop offs in early November, and now most recently the moves back towards highs and today’s sell offs.
Click to view, click again to zoom
Click to view, click again to zoom
Click to view, click again to zoom
With this correlation confirmed, the trade possibilities become endless with how you can work these stocks. Just apply simple support and resistance and go from there. For example, if Google falls under its 50 day moving average today on heavy volume, it could signal the same to come from Apple and Baidu.com. Also, intraday you could watch all three simultaneously and look for small spreads to play when institutions are buying or selling shares.
Blain,
I always new that the correlation between these was rather strong, but I certainly didn’t realize it was this close. These three are about as close to identical as you’ll get from stocks.