You guys are too quick to give up on this stock... if you look at the daily chart, it's put in a major double-bottom pattern (May 26/June15) and reversed up (on June 15) is just having a normal pullback in an uptrend. Since "everyone knows" that YHOO declines after earnings, a lot of the 'hot money' and smaller positions sold out of their shares this week. No big deal, the institutions will move in and buy this stock, they are just timing their move back into it along with the sector, and the broader market. The S&P got a little short-term extended recently, so the big money is letting it cool off.
YHOO is setting on it's 20EMA right here at $160 on this pullback, somewhere between here and $150 the buyers should rush in reversing it back up, resuming the primary trend as measured by the 20, 50, and 200 day MA's. No guarantees of course, but that's the most likely scenario.
This company is one of the three most important in the internet sector, those who think they are going to short it down to $30 are kidding themselves. AOL, YHOO, AMZN are here to stay as institutional favorites. I don't like them enough to buy and hold the stocks as investments (P/E too high for me), just stating the obvious facts. These stocks are excellent trading vehicles, especially if you like to Y-H-O-O!
IMHO, -Steve |
