Making a Quick Buck off Yahoo (NASDAQ:YHOO)
Feb 5th, 2009 | By Charles Delvalle | Category: Chart of the DayI hate Yahoo (NASDAQ:YHOO) as much as the next Google-loving fan boy does. But that doesn’t mean that I won’t at least look for a way to make a quick buck off of them.
Lo and behold, I ran across this chart…
Notice how Yahoo couldn’t pass around $13.50 in December and January? Also, take a look at the Slow Stochastic (at the bottom of the chart). When Yahoo peaked in December and January, the Slow Stochastic peaked near 80.
Technical charting is all about discovering previous patterns that have a high likelihood of repeating in the future. This is one of those patterns.
Today, the stock is at its resistance line AND the Slow Stochastic is peaking around 80. There is a high-probability that the pattern we saw the last two times (a drop in stock price) happens again this time.
That would mean selling Yahoo shares short or buying a put option could be an extremely profitable move.
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Charles Delvalle is a self-taught market-timing professional and value analyst who's followed and invested in the market for the past ten years. He uses a unique combination of technical and fundamental research to pinpoint rapid profit opportunities with stocks and options.
Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering undervalued, cash-rich companies. He frequently mocks government stupidities and points out the "inaccuracies (or lies, take your pick) that government reporting frequently dispels as "truth".
