How I Traded Alibaba ($BABA)

Before the Open our newest traders met at my desk to discuss the stocks to watch, including $ BABA.  When trading IPOs there are two important considerations:

1) momentum

2) technical levels

Below yesterday low of 89.50 tipped the momentum down.  Below 89.50 and BABA was at all-time lows, if you can say such a thing about an IPO trading 30 points above its IPO price.  During our pre-open meeting I counseled to “learn short” until we find the next very clear support level.

Well 88 in BABA became a clear support level.  It could not trade below there.  And bounced to 89.  Was BABA headed back higher?  Or was it just Read more […]
SMB Capital – Trading Education

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