Alibaba: Watch The Lion Roar

IPO's have been hot this year. GoPro (GPRO) was a major surprise and still continues to be as it went from $30 to $50 to $98 and today is up 5 points to $84. This happened to a company that in comparison to Alibaba is a smidgen of the size. When researching Alibaba (BABA), the first thing that sparked interest was the price. At $98.00 per share and opening today above $99.00 was a for sure "No Brainer" to be a magnet through $100.00. In MOJO University we call this the "Heinz" Trade Play.

Why will BABA surprise on earnings and jump 30 points? Have you heard of monkey see monkey do? Take a look at Expedia (EXPE) which reported earnings and beat on 10/31. The day before the stock was low of $77.74 and stopped there (we call it a stopping station) followed by a move on earnings to $85.75 followed today with move to $86.75. Nice (3) day run which is being followed by Priceline (PCLN) (called a Tag Along Trade Play). Priceline followed Expedia in same 3 day pattern and went from $1132 on 10/30 to a high today of  $1229 = 97 points. So the final case of internet, consumer related, beat earnings, monkey see monkey do reaction will come from the biggest stock of them all - Mr. Alibaba 

If this scenario plays out the stocks target is 20% to 30% higher, which puts stock in the $120 to $130 range. Watch the "Lion Roar" in the morning. Give the markets a good wakeup call.  

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DISCLAIMER:  MOJO Day Trading, or any of its employees, contractors, or shareholders or affiliates are NOT an investment advisory service, nor a registered investment advisor or ...

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