April 3, 2019

Watch the Dip in BABA

Alibaba (Ticker: BABA) is feeling the weight from sellers today as BABA is trading lower by 1% to 2% today when the Nasdaq was up 1% for the session. That screams weakness to me and it is tied to the dissolution from Altaba (Ticker: AABA).   AABA was the cheaper way of trading BABA since they basically moved tick for tick. Just like how IAC and MTCH trade in sync. Or, how SEND traded in sympathy with TWLO. Not anymore for AABA and BABA. AABA basically divorced BABA last night. Today the streets are voicing how negative they feel about this announcement.

So is this something that can progress into further stock price weakness for BABA? The answer is yes for now, but I think the stock rebounds sooner than later. As soon as tomorrow in my humble opinion. Especially if the trade war news gets louder and louder on a potential deal taking place. Many suspect the markets will washout when a deal is announced, but the markets can also soar on the news also. Regardless, BABA will benefit greatly from a trade deal and plenty of traders and investors are counting on it. This dip will probably get bought up. That is the saying, right? “Just buy the dip” and basically set it and forget it.

about the author:

Charles Moon

Charles Moon is a technical "whiz kid" whose experience lies in scalp/swing trading. A patient educator, Charles excels at coaching/mentoring and can make complex concepts simple. Prior to joining the ranks of Prosper Trading Academy, Charles was a proprietary equities trader with Great Point Capital LLC. Coming from a retail trading background, his experience can help those with no experience trading to seasoned veterans.

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