Speculating on Yahoo

tdy_marissa_mayer_121005.video-260x195Yahoo (YHOO) has developed significant momentum since Marissa Mayer took over as CEO in July 2012.  The chart shows room to run and I want to participate.

  • Buy YHOO @ $23.00

This is a momentum (greater fool) speculative trade, so I must set careful stops to limit losses or protect profit.  I will sell on 5% drop (@ $21.85) and will take profits on 25% gain (@ $28.75).

POSTMORTEM

Screen Shot 2013-04-06 at 7.23.24 PM

Writing today, 6th April, Yahoo is at $23.30, up 1.3% since I bought it.  The stock has been quite volatile this month, at one point down 4% to $22.01.  Although this is a profitable trade I do not think we can call it a good call.  Not yet.  Let’s call it a mixed call.

UPDATE

Writing today, 23rd April, Yahoo’s price has not advanced as steadily as I had hoped – it does not have the momentum I am looking for.  Time to get out, with a decent 6% profit.  I’m upgrading this trade to a good call.

Sell YHOO @ $24.40

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