YHOO Up, GOOG Up, Everything Is Good
I’m not excited yet.
Yes, Yahoo had good news on the earnings front and the expected good news bounce for YHOO is taking place. And GOOG is and has been in the past sympathetic to YHOO’s price moves…
Look at the price level that GOOG bounced off of - near the $480 level. The $480 level is where the stock found support for about 3 weeks in late November / early December 2006. That same price level is where the stock found resistance in late October / early November 2006.
If we discount the recent news, then the recent price action isn’t so surprising. GOOG is testing the support/resistance levels previously established. I *suspect* the stock is getting ready to wind up for the earnings announcement which is expected on 31 January 2007.
By the way, in my last post I mentioned looking for an inside bar setup. That occurred with last Friday’s inside bar. Traders would have sold short on Monday’s break of the low (or the low preceding the inside bar). As it stands right now, the trade would not be profitable - of course, this depends on your trading time frame. Day traders would have been whopping it up.
