The Line In The Sand
It’s nothing to ‘yahoo’ about,
or is it?
Investors might not think
so, but as an intraday trader, when key supports break out of a
classic pattern, you might consider trading from ‘the other side’ of the coin. I
personally love to play long side price reversals off of key EMAs and other
various technical levels, but when a stock fails to cooperate, as the saying
goes, ‘support becomes resistance.’
In today’s TM chat room, I first mentioned Yahoo!
(
YHOO |
Quote |
Chart |
News |
PowerRating)
as a stock to play long on a hold of the intraday pattern that was developing
above key daily support levels. This was occurring as the broader market was
doing some serious testing of its own. But I went one step further in this
case. Since YHOO is a widely held institutional stock and it happened to be
trading pretty much in synch with the indices in today’s trade, I stated
that if support failed to hold, Yahoo! should make a good candidate for shorting.
An alert for potential short plays subsequently
went out after Yahoo! (and the broader ETFs) failed to hold pattern and support
levels intraday.
13:20:41
Intraday Setup Alert
The evidence for reversal plays is
less-than-convincing at the moment, judging by the current market dynamics.
One stock worth consideration, as it’s ‘trading well’, in regards to the
indices, is Yahoo (YHOO).
The issue has broken intraday double bottom supports below its 20-day EMA in
today’s trade. Current action has the stock consolidating below these levels.
YHOO is off .84 at 39.56.
As I’m writing this, I seriously don’t know ahead
of time if Yahoo! will give ‘intraday shorts’ anything to ‘yahoo’ about either,
but one thing’s for certain–I know where my consistent edge lies, and I know
when to call myself a
yahoo if I don’t stick to playing the trades with the
long-term edge.