When Alibaba went public, similar to the Blackstone BX ipo, it coincided with peak euphoria in markets. We have bubbles in silicon valley,social media, and China all happening right now and BABA is the epitome of the crossroads. The massive liquidity event and subsequent buyer exhaustion helped contribute to last months declines.. However one massive V-Shaped rally to new highs later, the enthusiasm of the Bulls is back and stronger than ever. Alibaba is leading the charge,pushing fresh highs and earning a market cap of $283.6B surpassing even Walmarts WMT market cap of $254.5B.
Alibaba is the new leader of the bubble market and I am considering it my tell going forward. Only when BABA begins to crack and breakdown do the Bears stand a chance of sinking their claws into this market.