Alibaba Investors Loving The IRS?

'' Alibaba Group

shares are trading higher by $3.30 at $94 in Thursday's session. It is in the midst of a three day run (Tuesday's close $88.21), that was kickstarted by the news that the IRS was examining the status of Yahoo

tax free spin of its Alibaba stake. The issue, which had been range since its upbeat Q1 results from $84.61 to $89.29 on May 7, breached the upper-end of the range late in Wednesday's session and never looked back. After ending Wednesday's session at $90.92, momentum players forced a higher open and with only a brief retreat to $90.92, the rally resumed. So far, its has reached $94.77 and has pulled back to the $94 level. This puts the issue in a vacuum area that was created by its Q4 miss, that instigated a one day drop in price from $98.45 to $89.81. The follow through on the decline took Alibaba to a new all time low at $77.77, two days before it's surprising Q1 report. Wednesday's rally took place on higher than average volume, but today's rally is taking place on significantly higher volume. It has traded 31m shares compared with its 20 day average of 22.8M shares with over two hours remaining in the session.