With the Alibaba IPO out of the way, stocks are pulling back. All I see in reference to the $BABA IPO is the notion that it marks a top for the recent bull market.
I don't see anyone pointing out that the recent pull back is a prime buying opportunity for higher stock prices. Is anyone else calling this the $BABA Bottom? When a stock falls 80% odds are the crowd will say there is a great chance it will bounce. More often than not that 80% decline will morph into a 90% decline. The same can be said about this recent market rally. It's much easier to call for market weakness after a 200% rally, than to hop on the profit train.... especially if you aren't long the market. All the negative comments you see about the market are from traders and investors, who aren't long. They despise this rally.
With stocks ripping to record highs last week traders were surprised... stocks were supposed to be sold in order to buy the Alibaba IPO. I think we are on the cusp, yet again, of a defy the crowd type move that will send stocks higher, not lower, and have the top callers deleting their tweets in record fashion. This movie still has yet to climax.
The $BABA bottom is nothing more than a consolidation of record stock prices. A digestion of the recent move. Without it the market could succumb to an irrational downside move.
Everyone seems so quick to denounce the market, to short it (which has been the worst trading strategy of our time), to call an end the further stock gains. I say... pull back or not... embrace it. Grab that $BABA bottom and ride it to more gains.
I'll be starting my trade follow account this week. Join me here: