Yahoo!

I'll start off with a disclaimer. I added a very small Bull Call position in YHOO to one of my retirement accounts recently. This was strictly a breakout trade. Last week, YHOO broke above two month resistance. It seemed to be forming a ‘saucer' bottom, and breakouts from saucer bottoms in popular stocks tend to work out well.

What I noticed when looking at scan results for stocks with good seasonals starting next week was YHOO's strong pattern. In its 18 years of existence, YHOO has gained an average 46.5% over the next 19 weeks, with gains in 15 of those years!

Now there were monster gains in YHOO's early days which certainly affects the average. But even in the post-Internet-craze period it has done well. Since 2004, YHOO has gained an average 18% over the next 19 weeks, with gains in 9 out of 11 years.

Yahoo gained a new CEO two years ago and the market in general has been giving her the benefit of the doubt. YHOO went pretty much straight up after Marissa Mayer took the helm, gaining 170% in a year and a half. The first half of this year produced a 23% pullback in the stock, but it has been consolidating and now appears to be breaking out. In recent weeks, volume on up-close days has been overwhelming volume on down-close days.

In short, YHOO may be just starting to emerge from a saucer bottom. I decided to take a small chance here, and may add to the position as it proves itself. Veteran Investor's Business Daily followers may wait to see if it forms one of their favored ‘cup-with-handle' patterns and buy at the breakout of that pattern.

Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day.  To find out more, please click on the following link: www.markettamer.com/seasonal

By Gregg Harris, MarketTamer Chief Technical Strategist

Copyright (C) 2014 Stock & Options Training LLC

Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.

Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.

Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.

As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.

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