The repricing in China stocks this quarter has been fast.
Rate cuts shifted the macro backdrop. Sentiment flipped. And once the market began accepting that AI is not a U.S.-only story, capital rushed into the Chinese technology names that had been left behind.
Baidu (BIDU) became one of the clearest expressions of that shift.
When that kind of rotation takes hold, price does not move politely. It jumps. It overshoots. And it often does so before positioning and risk have time to normalize.
That is where we are now.
BIDU has moved quickly from neglected to crowded, and it is now pressing into a technically significant zone that often acts as a pause point when a trend has moved too far, too fast.
This is the part of the cycle where risk quietly flips.
Not because the longer-term story disappears, but because short-term reward compresses and downside risk expands.
This is where professionals step aside.
Not because they’re bearish.
But because they’re disciplined.
This is how asymmetric trades are managed — you extract the clean part of the move, then wait for the next setup instead of gambling on the last leg.
What I Am Doing Next
I’m closing out this BIDU trade into strength and shifting from profit capture to patience.
I’ve laid out the exact stock and option exits, along with how I’m planning to approach any potential re-entry, inside the premium briefing below.
If you’re following this position or want to understand how I manage stretched momentum trades like this one, the full details are below the paywall.
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