$BABA.US$ yesterday we notice a rotation out of tech sector ...
$BABA.US$ yesterday we notice a rotation out of tech sector into value stocks. Tech sector is very over valued currently and with interest rate hikes 3 times next year, it will make value stocks a better buy than growth.
Stocks like tesla, nvda and apple fell badly while I'm actually surprised baba held 120 quite firmly despite that 2.5% fall on the NDX.
But do not rule out this fall in the tech sector might spread over to the China tech as well.
Fortunately BABA is not on QQQ unlike netease and JD.com which mean a sell off on NDX will not affect BABA directly.
We still need to see BABA hold above 118 to have any chance of the next rally up. Preferably above 120!
As always, trade safe and invest wise!
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Thelord : I think USD 120 is solid support. Fundamentals does not allow it to drop further
Investing 101 OP Thelord : Hopefully. Because it has been holding many days. Longer it holds, higher probability its gonna shoot up from here.
Path To Wisdom Investing 101 OP : Now issues are the policy of CCP and USA battles, worse off CCP are trying to termination Alibaba monopoly of e-commerce at china.
Best of all, ask giant companies to donate big slice of their profit to the china Republic like annual basis now.
All these bad factors, I will say, just let it go if u folks scare.
Come back when things seem better for Alibaba.
Investing 101 OP Path To Wisdom : I'm on options. Just trading the swing. Still on profit. But holding for potential bigger profits. Willing to take small loss if it doesn't turn out my direction. Long term I know alibaba has huge competition with PDD and JD. But ultimately baba is expanding into finance which is ANT group and also cloud computing which is known to be one of the biggest few in the world behind amzn and microsoft. So prospect is still huge. But as you do not know whether baba has bottom yet, it is safer to wait for a confirmation bottom before I go heavy long on it.
Any temporary buys on baba will be solely short term swing trades.
antossiu : since CCP is the risk, i hope baba can change both ceo and headquarter to other country.. like what SEA case.
Investing 101 OP antossiu : Change HQ no use. They are based in China and main bulk of their business revenue still from e commerce in china. Even ant financial also in China. CCP can do anything they want as long their business is in China.
Path To Wisdom : Dun need think so much, we too tiny to change the boss - government of the countries.
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Golden rules, dun be the sandwiches of battles. Avoid it at all costs