Alibaba and its Investors have a Huge Day

David Frost // Market Outlook

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September 19  

The long awaited and highly anticipated Alibaba IPO went off without a hitch today.

The founder, Jack Ma and all the other investors either existing or new as of today won big.  The IPO was managed perfectly, up $25 on the debut and everyone seems to think this is just the beginning for Alibaba as they enter the western markets here and in Europe to develop their long range plans.

This is all great news.  Why, because it’s behind us and we no longer have to worry about waiting for the Alibaba IPO.

(on a side note, there is a highly probable chance they will go on a buying spree with some of that newly minded stockpile of cash and paper currency – who will they buy, anyone’s guess, but it’s fun to speculate)

Now we can get back to business as usual and focus back on the job at hand.  Making money in the markets.

This was a big week.  Options expiration, Scottish referendum vote, Alibaba IPO and the Federal Reserve policy statement and phony press conference.

We got through it all without even a hint of trouble.

On one hand this provides very clear signals the stock markets is strong and has little intention of giving up the ghost any time soon.

On the other hand, we have a normal turn period in the market upon us right now, and we should begin to see the effects of that play out next week.

If the market should turn and begin to correct, we will have to see the price action, velocity of movement and the pattern that’s put in before making a determination whether or not this will be one of those famed 3 – 5% corrections that we’ve been seeing over the last couple of years, or we’ll finally get one more meaningful.

Either way, swing trading will be picking up and as a result, so should the profits.

In the video below, I discuss this in more depth, including other markets such as gold and oil.

About the Author

Trading and investing in markets is second nature to some, but a mystery to others. The goal is to provide a forum where everyday people aspiring to be part time or full time traders will learn how view markets differently and profit beyond their wildest dreams.

David Frost