...No support at 17,000 signifies to me that either no buyers were around or smart money is selling. Tomorrow's another day as they say and some bargains may exist, but $BABA took a pretty big slice of cash off the table and so long as buyers and holders pay to wait, that cash remains used.
Not only has it taken cash out of the market, but $BABA has caused investor leverage to go through the roof and raised margin debt to higher levels. How are investors settling their $BABA buys? For example it is either with cash available, SMA from margin account, or selling other portfolio securities for cash to pay for buys of $BABA.
If $BABA went public last Friday, settlement and extensions are upon us, so selling pressure and going to cash is no surprise at all, but rather the surprise is the lack of support by institutional money.
$BABA could forever be remembered as the last big deal of the current bull market as it sheepishly says "baba" to the bull and ushers in the year of the bear. Companies going public and ending with a $240 billion market cap don't happen everyday, but in the end someone has to pay up for that market cap.
I could be wrong, won't be the first or last time but sure looks obvious to me.
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