So YHOO is currently hovering around 12.98. I bought it at 12.83, so it's about 1% over where I purchased it. It initially dropped after I purchased it and got as low as 11.98, which will definitely make you sweat.
The last few days have been positive for the stock because of rumors around a Microsoft sale, a large investor buying a lot of stock and organizational changes. This has pushed it up as high as 13.33 at one point. Yet I'm still not selling.
Here's why. The Dow is about 7,150 which is pretty damn low. It's as low as it was about 10 years ago, which means if you had just bought the Dow average back then you'd be a little over even assuming you received some dividends.
There is a lot of pressure building up for a rally. General consensus is that the floor for the Dow should be about 8,000. What's good is that YHOO is out performing the Dow, relatively. This means that YHOO went up while the DOW remained flat or went down. When the rally occurs, this should make YHOO jump up pretty significantly.
So what if the rally doesn't happen? Heh, that's why they call it gambling, uh I mean investing. If it doesn't happen you sit on it and hope for the best.
I'm convinced the rally will happen, because it's been going down for so long that mentally people are ready for a rally. As soon as any indicator occurs, people will jump on the bandwagon and drive that puppy up. It's called a sucker's rally. Which means the suckers drive it up and the non-suckers sell and take gains.
This approach is probably the most unholy, anti-academic approach in history. Real investors, smart investors hate people like me. I'm calling the stock market for what it is, an emotional response of slightly smarter than average people to CNN and Bloomberg. It's a bunch of sheep following other sheep leaving a trail of cash in their wake. I am the wolf that has discovered the pasture and am here to take my fill.
I guess I had too much coffee this morning. You may think I'm an idiot or a blowhard, we'll just have to wait and see what the money says.