Co-brand Partnerships

award-5.gif (6517 bytes)
Vote for Us

topsite.gif (1668 bytes)

webfifty.gif (6027 bytes)

 


 
drop_center.gif (2753 bytes)


wpe1.jpg (2095 bytes)


FREE EMAIL
Email Login
Password
New Users Sign Up!
 
NEWS SEARCH
WEB DIRECTORY
WEB SEARCH
 CITY GUIDES
search by:
 WEATHER

Current Weather
Enter Your City, State, or Zipcode:

   

MASTERING
THE TRADE

ORIGINAL, INTERACTIVE SEMINAR ON TRADING USING
TECHNICAL ANALYSIS
 

 
EARNINGS ESTIMATES

Enter Symbol

U.S. QUOTES

Enter Symbol:

U.S. CHARTS

Enter Symbol:

TECHNICAL OPINION

Enter Symbol:

CANADIAN CHARTS

Enter Symbol


 SEC FILINGS

Search For:
 

Company Name
Ticker Symbol

 BROKER RESEARCH
Exclusive Broker

Research
Enter Ticker

 

ARCHIVE:    JUNE 1999-MARCH 2000  

An InvestorLinks article
distributed every market day.

Yahoo Inc  (NASDAQ: YHOO)
Market Call™ for April 10, 2000
Contributed by Mark Seleznov, TrendTrader.com.

The purpose of this Market Call section is to educate readers in technical analysis patterns and indicators. As with all investment information, you need to research information and consult your financial advisor before initiating any strategies that are contained in Market Call.

Also, you must realize that as with all trading strategies, opinions can change quickly depending on market conditions and developments.

This column tries to present historical examples, potential set ups, and examples of entry and exit strategies.

  • Support and Resistance and Breakouts

    Think of security prices as a war. It is a battle between a bull (the buyer) and a bear (the seller). The bulls push prices higher and the bears push prices lower. A buyer that feels an area has good value, will buy at that level. The seller that feels that a stock has reached fair value, will sell at that higher fair value price. The direction prices actually move reveals who has won the battle.

    Remember when a trade takes place, a buyer and seller agreed to a price. There was a buyer and a seller involved in the transaction. The buyer feels the stock will go up. The seller wants to move on to another stock that he may feel will appreciate faster.

    Support levels are the price where the majority of traders feel the value is a good buy.

    Resistance is the level in which the majority of traders feel prices will move lower.

    When the majority of traders and investors change their expectations, these support and resistance areas get violated and a new trend may be beginning. This can occur due to changes in expectation of earnings, new product development, change of personnel, cut backs or expansions.

    One interesting pattern that traders see after a breakout, is that the stock or index retraces a part of the initial move by about 50%. If the 50% retracement does not hold, the stock or index can still be in a trend if the previous breakout resistance holds.

  • Let look at an example of a potential breakdown in Yahoo! Inc. (NASDAQ: YHOO).

    One important lesson I have learned is that the stronger stocks tend to stay stronger and the weaker stocks tend to get weaker.

    On Tuesday, we had a major sell off in many NASDAQ and Internet stocks. Many stocks have recovered partially from the lows of Tuesday and a few have even moved on to make new highs.

    However, many stocks are still lingering near weekly, monthly, or yearly lows.

    One stock that did not rebound very well is YHOO.

    During the sell off Tuesday April 4, 2000, YHOO dropped to a low of 132. A recovery brought YHOO back to 171 late Tuesday. On Wednesday and Thursday while many stocks in the NASDAQ continued to move higher and retrace their sharp sell offs, YHOO struggled.

    By Friday’s close, YHOO was back at Thursday’s support level.

    If YHOO breaks below 150 Monday morning, it may go back to test 132 or even lower.

    I would exit any longs in YHOO on any trade below 150.

    An aggressive trader may want to short YHOO at 150.

    If shorted, I would place a stop at 156.

    IF YHOO opens up strong on Monday morning, do NOT exit or short the stock. The 150 could be support that holds.

  • Chart courtesy of
     


    Interested in adding Market Call to your website?
    Click here for details: Market Call Information

    Mark A. Seleznov is a General Securities Principal and Managing Partner of Trend Trader, LLC, a NASD, SIPC broker/dealer firm located in Scottsdale, Arizona. A professional trader for over 25 years, Mark was a Market Maker on the Philadelphia Stock Exchange, a Retail Registered Representative, and futures trader. Mark is an author and recognized expert in equity Day Trading. He conducts seminars in Equity Day Trading and offers his firm traders training and support. If his firm holds any positions in the public companies he writes about, it will be noted at the bottom of his article.

    Market Calls is a daily syndicated column on trading by Mark A. Seleznov, Managing Partner of Trend Trader, LLC. For information on obtaining Market Calls for your web site, newspapers, or publication, contact
    Trend Trader, LLC at 602-948-1146

    Disclaimer: Trading in securities may not be suitable for all individuals. Consult your broker or other professional to determine your suitability. This is not an offer to buy or sell securities. The advice given above is of a general nature and should not be taken as a recommendation to buy or sell the referenced security.

     
    Search for it at the TulipSearch Open Directory
    Investment Bookstore Investment Newsstand Market Mavens Report

    TULIPS AND BEARS NETWORK SITES

     

    FINANCE
    Tulips and Bears
    Contrarian Investing.com
    Internet Stock Talk
    Traders Message Boards
    Traders Press Bookstore

    NEWS AND INFORMATION
    TulipsWeather
    Freewarestop.com
    TulipsMail
    TulipsEspa�ol
    TulipSearch
    TulipNews
    TulipCards
    AllMusicSearch.com
    City Guides
    Travel Center
    Bargain Bloodhound...coming soon

    WEBMASTER TOOLS

    TulipHost
    BecomeAnAffiliate.com
    TulipDomains
    GoSurfTo
    TulipStats
    ...coming soon
    TulipTools...coming soon

    Questions or Comments? Contact Us

    Copyright � 1998-2000 Tulips and Bears LLC.
    All Rights Reserved.  Republication of this material,
    including posting to message boards or news groups,
    without the prior written consent of Tulips and Bears LLC
    is strictly prohibited.


    Last modified: March 17, 2001

    Published By Tulips and Bears LLC