With China’s market going stark-raving mad, it’s interesting that king-of-kings Alibaba is struggling. After losing one-third of its value from its November peak, BABA has managed to recoup some of those losses. Recently, however, it’s sunk again, and the bulls’ main hope right now is that the horizontal I’ve drawn below provides support.
I’m short BABA by way of being short YHOO since, in spite of Marissa’s lovely photo spreads in Vogue, there really isn’t anything to Yahoo except for its BABA holdings. Thus, if BABA breaks the line above, YHOO is going to start to sink-a-roo.