The market blasted higher today, rebounding from yesterday's fall, only to see the entire gain erased half an hour before the close. Regretably, the bulls got a little strength back, but the day's gain was a fraction of what it had been up earlier. As has been so often the case lately, I started the day way in the red and, having done absolutely done, wound up nicely in the green.
Yahoo has long been a puzzle to me. I've been using computers since 1980, online computers since 1982, and the Internet since 1994. In all that time, I've used Yahoo approximately never. I love Yahoo Messenger, but that's about it. Anyway, I guess a lot of people do actually use this thing (in spite of so many better choices), but the MSFT/YHOO merger was officially scuttled today. It's remarkable to see how, nearly a decade after the stock peaked, it's still down almost 80%. I'm using an arithmetic scale here to better illustrate the drama.
I noticed the $UTIL is starting to form what would be a sensational head and shoulders pattern. It might take months to complete, but a collapse here would align with much higher future interest rates.
Gold continues to weaken. $1000 gold was such a huge deal in March, but that seems like eons ago now.
I'm loathe to cast a bullish eye on a stock, but this battered beast looks like it has a chance, provided it stays above the line you see here.
Oh, and poor AMR. This graph shows 40 years of trading. Notice how the low in 1974 matched the post-9/11 low. Can you believe that in the span of 5 years this thing has gone from a lifetime low to a lifetime high and is on its way to another lifetime low? Astonishing.
Another "poor old" stock – Sun. This makes Yahoo look like a blue chip performer. This stock is down 96% from its peak. Poor Sun. Most of the Internet runs off Java, its creation, but it seems like such a loser outfit.
I've been wanting to short CNH for a while, but I can't find the stock. Anyway, this fantastic head and shoulders complete today.
Here's a fine example of a failed bullish breakout. It blasted from $63 to $84, and now it's back down to $51. Ouch.
Here's another beauty I just saw – ICE. It can be hard to short stuff like this, since it's down so much already, but this is a massive pattern.
Here's another H&S in the making.
As for LEH, I have traded this in ages. Unless this is headed for bankruptcy, I have trouble believing it is going to go much farther down than this. But BSC fell to pieces in no time, didn't it?
This has been a terrific week so far. I'm holding out hope for a good Friday to really round things out. See you on the other side of the trading day!
