Making Veteran Moves on Veterans Day

The veteran, esteemed short-seller James Chanos (pictured above) came out with a short thesis on BABA last week, mostly due to accounting concerns. 

At the time, the China momentum stock, which IPO'd a little over a year ago, had staged a spirited rally from badly-beaten down conditions, raising the specter of a meaningful bottom in place. 

However, it was noted here that, beyond Chanos and his clout, the BABA daily chart was still sporting a declining 200-day moving average, rendering all rallies suspect until that condition reversed. 

Updating the daily chart, below, that circumstance looks to be asserting itself this morning, with BABA back below its 200-day and not yet putting in a meaningful higher low off its sustained downtrend over the past year. 

Going forward, if BABA loses $78, below, the scene of its 150-day and 20-day moving averages, I would look for the selling to intensify further. Bulls, on the other hand, likely need that area to hold true as support, followed by another push over the 200-day moving average--This time one which sticks.