Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (7836)	3/5/1998 10:50:00 AM
From: Robert Sievers	Read Replies (1) \| Respond to of 27307

craig was right. Buy on the dips! Actually, as someone short at $43, I have never been more confident than the last couple days. Here is why. Most normal stocks approach resistance, back off, then approach again maybe 2 or 3 more times before breaking through on increased volume (~2x-3x) with a then steady upclimb until a new temporary resistance level is set. YHOO blew right through resistance as if it wasn't there, then traded 6x average volume. What might be going on here? The sellers didn't care about the breakout; they never did. They used it as an excuse to dump? But ah, the buyers! The buyers were either momentum players who just got hoodwinked, or short coverers that though this stock was behaving anywhere near normal. There is a name for this type of behavior in any TA 101 book. It is called an "exhaustion burst". I will leave it for an exercise to the reader to see what happens to stocks that show this kind of action.