Some expected profit taking in the market after YHOO and AAPL results but I see selling pressure diminishing in YHOO and it is rebounding. I expect a green day today for YHOO.
So you expected the stock to rally after earnings. And because it's selling off, it's profit taking? I think you are too vested in this.
Maybe but after 17 years of professional trading I have learned not to fool myself. I have also a confirmed news that two big hedge funds are largely increasing their exposure in YHOO but unfortunately I cannot tell their name here.
YHOO is in slight upward trend. It seems that the sell off after the earnings is over and some are accumulating the shares. However the volume is low which can be both good and bad. Bad because it does not confirm uptrend and good because it shows there is no selling pressure. Another good thing is that YHOO is going up when SPY is down. My recommendation is "BUY" now cautiously in steady slow quantities.
It seems that the a rumor that YHOO will have an announcement on Monday is pushing the stock much higher. Announce what? I don't know.
I noticed very unusual activities last week. Stock is nervous. Watch for a big pop soon. I am all in. Stock is trading above 50 and 200 Day Moving Average now. Downside risk is limited and the trend is bullish.
I saw lots of wild buyings AH and before the open @ 15.95. in the last couple of days. About 100K shares chunk. They were not small trades. When YHOO drops it drops in a very low volume.
Definitely looks this stock is getting ready to pop. My only worry is that the rest of the techs have been in a pretty solid uptrend while yahoo can't seem to follow its peers. If / when this market pulls back, will yahoo fall faster than its peers ? Who knows I really liked that straddle play the above poster made in late January !
Another great trade would be risk reversal. That is buy Call 16 for Feb 17 and sell PUT 16 for the same time. You can do it for credit or do it even in ratio (sell one PUT and buy 2 or 3 calls) PUT is 38 cents and Call is 17-18 cents as I am typing