YHOO Watch

The media company Yahoo! Inc. (YHOO) has moved to bull phase on the parabolic sar. The shift in the technical signal has not yet been confirmed by a price move.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
YHOO $16.44

At 10:33 p.m. Eastern

An analyst report this morning rated YHOO as a buy.

With the average directional index at 25 and the price trading below a downward pointing 20-day moving average, this signal isn't following a directional trend by any reasonable definition.

YHOO has been trading sideways since April 2009. The current bull phase has value only as showing the beginning of another oscillation in that ongoing pattern, which has generally run from $18 at the top end down to $14.50 or so at the lower end.

So that pattern, as long as it holds, would provide limited upside for a directional play. The limit is about 9%, however, which is pretty attractive.

YHOO could also be played as a sideways play -- an iron condor, for example -- set up for maximum profit between $18 and $15, perhaps. The strike prices on YHOO options are $1 apart, with makes it easy to set up an attractive risk-reward ratio on that sort of sideways play.

Reversal Levels

• $19.12, +16.3%
• $17.83, +8.5%
• $16.83, +2.4%
• $16.44 <== You are here.


• $15.25, -7.2%

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Skynet Panic of May 6 Panic Looks Like This Skynet Panic Poisons Technical Tools Abbreviations: psar - Parabolic Stop and Reverse adx - Average Directional Index pps - Person's Proprietary Signal ma20 - 20-day moving average macd - Moving Average Convergence-Divergence mfi - Money Flow Index sto - Fast Stochastic About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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