I really bought 500 shares this afternoon, and courage hopefully had less to do with it than other factors.
I bought the extra shares because Excite's numbers proved to me that Yahoo's lead is not being diminished by the #2 player, and Yahoo's sell-off today was not convincing.
Why wasn't it convincing? Yahoo didn't trade below yesterday's low of 119. Volume was down from yesterday. Most importantly, Yahoo was down by less than half as much as the other aggregators today, an obvious sign of strength for a stock that has led this move.
When you have a position that is so far above cost as this one is for me (luckily), you become desensitized by "the pad". I laid on these new shares because I thought they are a good investment, and also because this new position, at twice the price of my last purchase, sensitizes me to the stock's pattern again. Otherwise I could sit here, debate and philosophize forever, completely detached from the trading pattern. Not good.
Why do I think these new shares are a good investment? The order of the Internet directory space was defined two weeks ago when Yahoo blew away the numbers. The stock opened at 107 on the news, and created a firestorm of buying in the sector....all based on news from Yahoo. Excite's results declared Yahoo the unchallenged leader last night, and for a stock with Yahoo's beta, there is little statistical difference between 107 and 121.
No one would be congratulating my bravery if Yahoo had gapped to 10 3/4 on its results two weeks ago, and had I then gone in and bought some more today at 12 1/8. |
