J, tuff question. YHOO's 50dma (145) and 200dma (152) are questionable support levels since these net stocks trade on sentiment more than anything.
If I were trading it, I wouldn't rely on any technical analysis criteria that heavily.
I think the Fed hikes, regardless of what these "gurus" say. Things to conisder between now and 10/5 (I wouldn't be trading this on 10/6, regardless of what the Fed does):
1) YHOO has bounced significantly already from its lows
2) Unless we have a massive rally, I would trade this w/ very tight stops ("tight" on YHOO being 4 pts max)
3) Market in general is still rangebound, as it has been since late Spring. Therefore, unless I see some firming action among the leadership stocks (CSCO, INTC, MSFT, DELL, and yes even AOL), I personally won't be inclined to do anything but flip YHOO.
4) If we close above 172, I think it'll atleast try to test the highs from early July. I could be very wrong, but I doubt YHOO tests 200 anytime soon.
Don't get me wrong, I love YHOO. However, I loved it in 120s when all these gloom and doomers were jumping over each other to predict when YHOO breaks 100 and a whole bunch of other nonsense (just as these fools are attempting to declare the end of AOL at these levels).
Click on my name and if you'll scroll back, you'll see that I tried to exlpain to people that this is not a stock you want to give up on. In late July and Early August, lots of regulars even stopped posting on this thread. Funny, everyone loves to see a stock going up but lately no one has any stamina for a decline. I'm looking forward to picking up YHOO after earnings season, unless any of the afore mentioned criteria are met.
Hope this helps. Best of luck.
Regards,
SH |
