BABA Charts...

I've mentioned my gut feeling a couple of times today, that is that the bounce we started seeing signs of last week, I believe Wednesday and had made a clear forecast of a short term/near term bounce on Thursday (the same day VXX puts were opened), isn't likely to last beyond mid-week (typically we'd still have several days of reversal process after a high is put in or the bounce has lost all momentum), but in this case I have a gut feeling this will be a faster, more dramatic swing down.

One of the reasons I think this is because the divergence that formed indicating a bounce, did so on some fairly respectable timeframes, but did so in a very narrow slice of time. In other words the broad, wide base that can support an extended move just as if you were building a tower, the broader your base the higher and more stable you can build it. is just not there.

In addition to this being part of my gut feeling we get a faster, sharped than normal downside reversal off the bounce, it also looks to me like the market or the pro-side participants know that they don't have much time to get off any upside moves, which may preclude BABA from a head fake / stop run move being it's already lagging the start of the bounce.

However the final decision was based entirely on the charts, everything else above is after the fact opinion.

 Tje 1 min intraday chart is the one I would have expected to see an intraday divergence (negative) on if BABA was getting ready to make a stop run below the $80.10 (support) or $80 ()psychological magnet) level. Instead it has just improved all afternoon like the SPY/QQQ intraday charts I just posted in Holding VXX Puts for Now

You can see a very clear leading positive divergence (remember this is a 1 min chart and as impressive as the divergence looks, the timeframe is more important as to gauging its strength, this is the fastest moving, but weakest timeframe we use-typically good for intraday signals as mentioned above.

Upon closer inspection of the same chart, this morning's intraday lows showed a positive divergence (accumulation at its intraday low. The chart hasn't showed anything all day that would suggest we see an intraday stop-run/,head fake move. As I said above, I suspect it's a lack of time.

However the alerts from the earlier Trade Set-Up: BABA post still stand. With a half size/Spec. position size, this allows room to add to the position if the trade set up I'd prefer, actually takes place.