Alibaba: Watch The Lion Roar

Alibaba earnings are due before the open of the market Tuesday 11/4. Analysts expecting $.38 cents per share. This IPO was in the spotlight a few weeks back on the IPO debut. Since then the Lion has been sleeping. In the meantime other stocks not in the same caliber continue to show strength.

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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