I read numerous discussions about BABA being the end signal of this long running bull market. Not a bad call to this point as stocks are much lower than they were at the BABA IPO. However, that argument didn’t concern me as much as the stock did. Leading up to the IPO I was trying to develop an opinion on the stock, and initially my opinion was simple; I didn’t have one.
I wanted to observe price action in this for the first few weeks, and noticed that it followed a very specific path that TWTR did post IPO. I wrote about this here.
Here is another look at the charts:
Remember, TWTR created a “chase.” Most were very bearish on the idea as it came to market and avoided the long. We got an amazing entry on this based on that sentiment. Once it started moving, minds were quickly changed and the stock ripped higher, forcing non-participants to chase it all the way up.
I’m not suggesting BABA is going to have same outcome, but this is what we positioned in this name for.
OA
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OA, any thoughts on SINA? This is a great fundamental company beaten down. Seems to have based in the ~$37 range.
I agree, but I got out a while back. I’ll revisit at some point…but no opinion yet.
this GWRE looks good here
Software stocks are my favorite group here.
Bought FCX – I am a copper man!
OA, will you hold TZA in to the weekend if it hold around here?
Did you follow the analysis about RUT location last night?
Yep, just wondering if you were swinging the trade or day-trading it like you have been in the past. Based on your question I know the answer. Thanks
You know, I think that 1119 spot is compelling. The RUT is down today, holding that spot. Everything else going up without it.
I like my odds to hold. I think we take a shot down early next week.
BABA looks very similar to TWTR in both chart and gap up from the IPO pricing. Perhaps people got short too early in both looking for a facebookesque gap fill.
JDST coming back strong – picked up more shares today