Bah-bah has had well publicized troubles enticing big foreign vendors aboard. If this is just growing pains, we should see the stock bottom near the 97.23 Hidden Pivot support shown. There’s implied room to short the last few points to the target, but officially I’ll recommend bottom-fishing if and when it’s reached. Specifically, buy four January 30 102 calls with the stock trading within 0.05 points of the target. My guess is that the calls will be trading for around 1.00, but you can hone your bid based on the actual bid/asked spread at the time of the trade. Your bid should be about midway between bid and asked. _______ UPDATE (January 15, 11:49 p.m.): The calls never got within a mile of our quite reasonable bid, but if you bought any at any price you would have had a chance to take a partial profit when the stock rallied from 97.07 to 98.17 in the space of an hour. The ease with which BABA obliterated the midpoint support means the stock will now head down to at least 94.26 before it tries to turn around. You can bottom-fish there any way you please, but a stop-loss no wider than 94.14 is suggested.
