Took a break from the blog for summer and that lasted a few more weeks into fall so here we are back with the weekly and sometimes more frequent than that updates. This time around the post will profile the Chinese Internet stock SOHU....the CN internet stox got hammered a while back and this looks like the possible beginning of Stage 2, the next leg down, as most of them (SINA, SOHU, RENN, YOKU, BIDU) are all coming up and trading near downward sloping moving averages (exponential 20 or 50 DMA).
Playing on the fact that the sector is out of favor and they have recovered quite a bit in percentage terms in the last week to trade at or slightly below some rather significant moving averages, we'll initiate a short position in SOHU. The stock is trading in the $57-$58 range, the stop is today's high of $60.64 and the expected move is down near $50 where it was trading last week.
Look for more consistent updates in the coming weeks along with new charts and current trades/positions.