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Technology Stocks : Shorting YHOO
YHOO 52.580.0%Jun 26 5:00 PM EST

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To: Stephen M. DeMoss who wrote (77)10/19/1999 11:35:00 PM
From: radames  Read Replies (1) of 108
 
yhoo price action could be seen two ways
imo the bullish case is that in light of extreme market sentiment and a long bond at 6.35 percent and the fed with a tightening bias and strong economic #'s that will give it a basis to act on it's warning of a tightenig bias and possibly raise 50 basis points as was the rumor today ,,yhoo with it's 1000 +p/e and over 50 billion cap and non propriatary technology still keeps rising as if we were in a low inflation and lowering intrest rate enviornment and may even rise to 200 +
2. the bearish case is that all of the above will catch up with the stock valuation hence causing an even steeper and rapid post earnings sell off,,
imo the action with yhoo has alot of to do with options market it rises a little to get the shorts to cover and people to buy calls only to decline rapidly locking everyone out as the price falls rapidly making it difficult for people to take a position,,imo we may see a 20 -40 % correction from these prices imo i see yhoo going to the 110-120 range before options expiry and tham a pre x-mas run back to where we are,,
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