A Time To Zag? BABA Bye-Bye?

hong-kong-864884.jpg
For a century  British-held Hong Kong had been the only crank of international commerce in China. No longer. In fact, Hong Kong’s once glittering numbers now seem meager alongside dozens of other mainland production centers.   Xi Jinping’s China is now the unstoppable planet-changing wave.  Hong Kong Harbor aflame by night.

Alibaba

is growing on all cylinders, mostly all above 50%.  Back in 2017 Amazon Prime Day broke the $1 billion dollar ceiling.  It was fabulous really, the substance of dreams and tears and incredible execution on all fronts.  All true.

 

 

Alibaba shrewdly slid itself in beside the Chinese “Single’s Day.”  This staggering retailer transformed Single’s Day into the biggest on and off line shopping day of the year.  In 2017 BABA collected $25.4 billion on that day.

 

On Tuesday 6-26-18 we lock-in a small gain by selling Alibaba at $189.75.  We watched it rise back above $192.  Our reasons are two-fold.  Alibaba is in the middle of a trade dispute that has no end in sight, and zeri visibility.

 

 

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The jarring on-rush of Asian economic power is staggering. The momentum releasing is mind-boggling. Within that wave of incredible growth is where BABA lives, and thrives.

 

The chart below demonstrates the current technical condition for Alibaba shares.  We see multiple bearish technical indicators, as labeled.  We believe tensions are behind the tread reversal.

 

 

The trend is your friend.  There are times to ride out the sway, and others to go away.  It’s always a judgement call. 

 

BABA, 6-26-18. Close.
Chart, BABA, 6-27
One of the “Seven Deadly Sins” in chess is under-estimating your opponent. As investors our opponent is market tension. Trade wars qualify at the highest level(SJChart.)

 

 

The current fundamental vigor of Alibaba doesn’t register in it’s highly-challenged share price.  BABA’s future is luminescent–as bright as could be hoped for.  Perhaps the most serious problem investors face here is the “law of large numbers.”

 

 

Graphic, BABA market

 

 

Alibaba’s chart  displays a clear bearish trend reversal.  Bearish price action as price falls through support at its’ 50 Day simple moving average.  Again bearish.

 

 

That law about large numbers is as real as the law of trade wars.  Wreckage is assured.  Most of the most direct and severe damage can be dodged.  That’s why we sold Alibaba now.  We’ll be back, after a tweet from the president.

 

Alibaba(NYSE: BABA.)  STOCKjAW  out at $189.75. NON-CAGR gain(following earlier profit taking) 25%.  

 

Thanks for reading.

AAA Stockjaw scooter

STOCKJAW.COM

Images sourced from Pixabay.

https://pixabay.com/en/photos/
Pixabay.com is simply amazing–a sprawling compendium of joy.  Thank you Pixabay.  If you also know love and use Pixabay’s lavish resource, please take time to donate to them at Pixabay.com.  We do, truly.

Additional resources:

Investopedia.com.  Seriously Wonderful.  Fact.
http://www.investopedia.com/
Charles Schwab.  In Our Opinion, the best broker going.
https://www.schwab.com/public/schwab/client_home
STOCKJAW.COM EARNESTLY THANKS YOU FOR YOUR INTEREST AND WISHES YOU THE VERY BEST.  THE WORLD BEING WHAT IT IS, WE MUST POST THE FOLLOWING:  ALL CONTENT ON STOCKJAW.COM IS PURELY FOR GENERAL EDUCATIONAL AND ENTERTAINMENT PURPOSES ALONE.  ANY ACTION TAKEN BY ANY READER IS THE SOLE CHOICE AND RESPONSIBILITY OF SAID ACTOR.
Be careful.  Do the work.  Have patience, with yourself.  Never put your dreams away.
stockjaw

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