Another day another 400 point move on the DOW, a traders dream....or nightmare. Since our call the other day Yahoo is up almost $2 per share. For the math challenged, that is almost 20% over 3 days! Remember again that at this price any acquirer gets the search engine for $-0-! We still see.......$18-$20 on a buyout offer. Now we do not have inside information, but the stars seem to be lining up.
We have said to pick your spots and buy and then walk away, we said the markets will be a roller coaster now listen one more time......Whatever you bought this week hold to next month and reduce by 50%. September is historically the worse month in the Markets, contrary to the popular belief that October is the month. Add to that congress back in session and the 10th anniversary of the 911 attacks and you have a recipe that only those with a strong stomach can endure. 50% reductions into cash keeps your powder dry for opportunities that will present themselves in Oct-Nov during earnings season. We are liking retail, high tech and home builders for ideas in the 4th quarter.
Today, this morning, is short and sweet. Much to do, stars to chart, incense to burn......Remember that most traders flatten positions going into the weekend during the summer and YOU NEVER LOSE BY TAKING A PROFIT!
The Prophet
Showing posts with label Yahoo. Show all posts
Showing posts with label Yahoo. Show all posts
Thursday, August 11, 2011
Wednesday, August 10, 2011
Give and Take.....Sure Tests the Soul
Well what the Federal Reserve gave us on Tuesday was taken back Wednesday. After recovering 400 points in the DOW on Tuesday, due to positive Fed Speak, the DOW fell over 500 points as worries over the European debt crisis again became center stage. A little side issue is brewing and may impact investor sentiment, KOREA. It seems there are itchy trigger fingers at the 38th parallel both sides lobbed things that go boom at each other. No reports of injuries but this simmering geography may show itself to be more of an issue than the market currently appreciates.
We saw some cracks in the market before the trading session opened, we even told you to walk away after making any strategic buys. Well if you did not walk away, the roller coaster ride left your heart in your mouth. These points are re-entry opportunities but tread lightly and carefully. YHOO however, interestingly enough, held its ground and reported better search gains in July. According to the STREET the MicroSoft BING deal is starting to generate positive results.
Financials are taking a hit but most bank exposure to Europe is limited and Bank of America has almost no exposure. Wells Fargo and Morgan Stanley are quality buys under the circumstances.
Congratulations to Apple (NASDAQ: AAPL) they are now the most valuable publicly traded company surpassing Exxon by almost $30B in value. By the way AAPL has over $70B of cash and equivalents in the bank.
Settling down for the evening and some star gazing....Remember you never lose by taking a PROFIT!
The Prophet
We saw some cracks in the market before the trading session opened, we even told you to walk away after making any strategic buys. Well if you did not walk away, the roller coaster ride left your heart in your mouth. These points are re-entry opportunities but tread lightly and carefully. YHOO however, interestingly enough, held its ground and reported better search gains in July. According to the STREET the MicroSoft BING deal is starting to generate positive results.
Financials are taking a hit but most bank exposure to Europe is limited and Bank of America has almost no exposure. Wells Fargo and Morgan Stanley are quality buys under the circumstances.
Congratulations to Apple (NASDAQ: AAPL) they are now the most valuable publicly traded company surpassing Exxon by almost $30B in value. By the way AAPL has over $70B of cash and equivalents in the bank.
Settling down for the evening and some star gazing....Remember you never lose by taking a PROFIT!
The Prophet
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