Alibaba Near Major Top

Alibaba Group Holding Ltd (NYSE:BABA) is up 42% in less than a month. Tomorrow is the Black Friday of China and could spell a pull back in the stock. Why? Often times retailers run sharply higher into major shopping days like this. This is a classic buy the rumor event as investors clamor for the next big thing. Most likely, the stock will top out within the next 24 hours with a max high of $120.00. In addition, every analyst is bullish on the stock even at these premiums. This spells a contrarian indicator. While Alibaba Group is an impressive company, an increase in market cap of this magnitude is unwarranted. Look for the top to be in within the next 24 hours.

Gareth Soloway
InTheMoneyStocks.com