The working title for today's Barron's Online column was "Reanimated Tech Stocks for Christmas." It was about how several tech stock that were left for dead have been resurrected and may be good opportunities. You'll have to read the column
to see what they were. Can't give away the store otherwise Rupert would have no need to pay me.
There is one stock I did not include in the list, mostly because we have editor-imposed space limits.Yes, theoretically the online limit is whatever I can write but realistically nobody is going to wade through a 3000 word piece.
What stock? Well, if you read the title of this post you know. The betamax of search engines, Yahoo, is on the mend. Remember those campy commercials with the eskimo family ordering a hot tub? or the Eastern European dating service with the monkey and the toucan? Yahoooooo-oooo! Yes, fun but we all now google and bing stuff, don't we.
[Related -What The Market Wants: Slow Market Growth Continues: Consider BCOR, JBLU, PRU]
Anyway, check out this weekly chart.
Yahoo is now at the top of a long base, if not slightly through it. I think that it needs a little rest here as momentum driven rallies do tend to fail. Just look at the last two tries above. But overall not too shabby.
And now look at weekly RSI. A quote:
"The most bullish thing a stock can do is get overbought and stay that way."
[Related -Call Options Active in Yahoo! Inc. (YHOO)and BP plc (ADR) (BP)]
- Alan Shaw, CMT (former TA boss at Smith Barney)
Disclosure - I own some.