Tuesday, July 27, 2010

YIPI Watch

I love junk email, at least the kind that gives a me a chance to look at a bulletin board start-up that someone is pushing. Today's is a company called Yippy Inc. (YIPI), a browser plus search company that began trading in late May.

Browser and search? Thought that market was already saturated. But the Yipsters seem to think that their technology will enable them to gain a foothold over the Googlians, Yahooligans and Bingsters. If so? Way cool!

The company's mission statement sums things up like this: "God controls all creative thought it's what you do with it that defines who you are. Are you Good or Evil?"

Well, OK. If BP had such a thought as part of its mission statement, would the Gulf be quite so oily today? Just asking.

The email touting the stock takes a more worldy approach: "[I]ts shares could quickly jump as much as 4,346%."

I won't go into YIPI's technology -- I don't understand how they're differentiated. I will weigh in with my usual strong caveat when it comes to OTC start-ups: These stocks are thinly traded. Their prices are easily manipulated. They are sometimes prone to pump-and-dump manipulations that ensure that unwary traders buy high and sell low.

And a look at the chart for YIPI leads me to suspect that were I to buy now, I would be getting on the gravy train when the gravy was nearly gone.

The stock hit an all-time low of 83¢ on July 20 on a volume spike of nearly 259,000 shares.

The price paused for a couple of days, culminating in a low-volume day of a bit more than 21,000 shares, and then began a steady rise on increasing volume, on July 23, 26 and 27: 232,000+, 263,000+, 290,000+.

An email touting the stock went out this morning before the open.

With that pattern, I think it's its natural to assume a cautious stances toward that run-up in price.

Person's Proprietary Signal (pps) moved to bull phase today, as yet unconfirmed by the parabolic sar. The macd, although still in bear territory, is rising toward the zero line.

Reversal Levels
  • $2.90, +60.2%
  • $1.83, +1.1%
  • $1.81 <== You are here.
  • $0.83, -54.1%
I wouldn't buy this stock for my own portfolio without a decline below $1 and then an intra-day rise on higher volume, and even then I would consider it to be one of my risky speculation plays.

The Great Reflation: How Investors Can Profit From the New World of Money
OK. The credit bubble burst. Housing, burst. Shockwaves reverberated. Markets collapsed. What lies ahead as we reemerge from the wreckage.

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.
  • psar - Parabolic Stop and Reverse
  • adx - Average Directional Index
  • pps - Person's Proprietary Signal
  • ma20 - 20-day moving average
  • macd - Moving Average Convergence-Divergence
  • 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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