Thu January 11th 2007
Yahoo, Net Stocks on the Riseby Mike Paulenoff,
www.MPTrader.comYahoo (YHOO) has rocketed from 25 to 29 (+16%) since 12/21, but the most important aspect of the upmove is that it emerged off of a pullback low -- a secondary low that occurred after an initial upleg from the October low at 22.65 to the November high at 28.56. The thrust off of a secondary low usually is much more powerful than the initial upleg -- in the aftermath of a major period declining prices like unfolded in Yahoo between Jan and Oct 2006. If the post 12/21 upleg merely "swings" to an equidistant target, then YHOO is heading for 31 next. However, if as I suggest this upleg should be more powerful than the prio upleg, the upside is at least 33.00/40, which should help motor the HHH Internet ETF. The HHH (54.76) has just hurdled its one year resistance line (54.50), which bodes very well technically for upside continuation towards 56.00...led by big components YHOO, AMZN, EBAY...in that order.
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