Admittedly, this isn’t exactly shocking stuff. Wal-Mart has been praised for being one of the only retailers to continue posting earnings that surpass estimates. But praise hasn’t given them higher share prices since the crash in October.

As you can see, Wal-Mart’s been dropping since last October. But interestingly enough, WMT has managed to hold above its October lows.

This combined with the fact that both the RSI and Slow Stochastic are showing WMT as oversold means that buyers should rush in and push WMT share prices higher.

For the traders out there – go long and place a stop @ $47 per share. If all goes as planned, WMT should rise over 10% in the next 30 days.

Jerry Yang After Saying "No" to Microsoft's Offer

This is a guy who sucked so many eggs, that he decided to say “no” to Microsoft’s buyout offer, even though they were offering a MASSIVE premium to Yahoo’s stock price.

Just so you know, that offer was to buy Yahoo for over $40 a share. At the time of the offer, it was trading under $30 a share. Today, Yahoo trades at $12.

It’s not that shocking that Jerry Yang was compelled to give up his position at Yahoo. After all, he lost shareholders one of the most lucrative paydays ever (right as the economy was plummeting).

But believe me when I say that Jerry Yang leaving is good news. Just take a look at the chart below to see why I think that…

What’s interesting about this chart is that Yahoo prices bottomed right as Jerry Yang was leaving Yahoo (he resigned on November 18th).

After that announcement, shareholders took Yahoo stock up over 40%. And since then, Yahoo has continued to make higher lows in an attempt to rally past $14 a share.

Adding strength is the fact that the Slow Stochastic (at the bottom of the chart) is oversold right now.
Oversold means just what you think it does – something has been sold too much. And if something has been sold too much, then eventually buyers will swoop in and snatch up shares at the more attractive, lower prices.

If you notice, the previous two times Yahoo was oversold, it went on to rally at least 15%.

While it is oversold, we also see Yahoo hitting the bottom of its newly formed support channel. And lastly, we see Yahoo starting to use its 50-day moving average as a support, not resistance.

This means Yahoo shares are primed for a climb over the next two weeks. Buying shares is a great move, but buying call options is a better one.

None the less, my dad loved the damn thing. And admittedly, I have one too (because they’re a lot better!). In fact, millions of people do. Garmin’s stock soared for years on the back of increased sales of their GPS units.

But you have to wonder whether people are willing to fork out a few hundred bucks on a non-essential when they’re about to lose their homes, their car, probably their dogs too.

Remember, markets are forward looking. What this decline from $120 to $17.20 per share tells us is that the market expects consumer spending to plummet. And so far this is exactly what we’ve seen.

In the short-term, though, Garmin could actually move higher.

As you can see, the Slow Stochastic indicator (at the bottom of the chart) is currently rebounding off of oversold levels. In other words it appears that buyers are swooping in to take the stock higher. Playing a call option here might not be a bad idea.

But you shouldn’t expect the stock to move much further than $20 per share. That’s where it meets up with its long-term downward trend line.

Unless it passes $20 per share, this stock should continue to plummet for at least the next year.