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YHOO Trade Entry & Setup

YHOO (Yahoo! Inc) offers an objective short entry here on the break below the S1 support level following the recent bearish rising wedge breakdown & backtest. Suggest stop above 44.45 with a suggested beta-adjustment of 0.9. T1 is 38.13 with the final target, T2, at 35.85.

YHOO daily Oct 13th

YHOO daily Oct 13th

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Oct 13, 2016 3:32pm|Categories: Completed Trades - Short|Tags: |5 Comments

5 Comments

  1. j1persi October 13, 2016 3:55 pm at 3:55 pm

    Me likely

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  2. jegersmart October 13, 2016 4:02 pm at 4:02 pm

    Hmmmm…not really a 3:1 RR ratio…:)

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    • rsotc October 13, 2016 4:16 pm at 4:16 pm

      Correct, just above a 2:1 R/R on this one as I very much like the trade and after the recent flurry of stop-raids over the last couple of months, I’m going to give certain trades some more room which may include using stops that are below my typical (but not line-in-the-sand) preferred R/R of 3:1. As always, the stops & targets as well as the entry levels are just suggestions based on how I would trade these patterns. I leave it up to each trader or investor to pass on the trades that don’t align with their outlook on the market or a particular sector as well their trading style while also utilizing their preferred stop allowances & price target level(s).

      A more aggressive, but objectively placed stop on YHOO would be slightly above the 43.10ish horizontal resistance level, as that will also have taken the stock back above the R1 trendline. G-luck if you take/took it!

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      • morrienelson October 14, 2016 10:33 am at 10:33 am

        Yahoo reports earnings after the market closes on 10/18. Would the market even care about this event (even if bad) given the pending acquisition by Verizon? There were news hits yesterday that Verizon was considering invoking a MAC provision to renegotiate the deal given the huge data breach. Could poor earnings be another catalyst in their favor. I would think so and I have to believe that advertisers have fled the Yahoo ship and the results should be bad.

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        • rsotc October 17, 2016 12:11 pm at 12:11 pm

          morrienelson- Quite possibly. Thx for pointing out the earnings release scheduled for YHOO. Personally, I plan to ride this one out but quite a few swing traders that I know prefer to close a position out before an earnings announcement as to not get caught on the wrong side of a gap.

          Should YHOO gap up beyond the suggested stop, I will wait approx. 30-60 minutes after the open to allow for the order imbalances to subside & then place a stop above the HOD at that point & let the position ride. Quite often, earnings induced gaps are faded but sometimes it takes a hour or so or even a full trading session before that happens. Of course gaps can be built upon as well, hence the reason for a stop being placed shortly after the open, in case the trade goes against me.

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