NEW YORK (
TheStreet) -- For the most part, there is a dearth of opportunity on the long side of trading right now. After the August devastation, the well has gone dry. There are, however, a few stocks that are holding well like
McDonalds (
MCD),
Apple (
AAPL),
Pricesmart (
PSMT), etc.
These are stocks with nice balance sheets and income statements, whose management continues to perform in a difficult period. Then there are stocks whose management has basically failed to deliver and who are rumored for takeovers.
Yahoo! (
YHOO) fits that bill. See the daily chart below.
This is not a stock chart that I would choose to invest in, but for a trader, it is definitely one that can be traded. Even after the big price jump yesterday, support is nearby while resistance looms at two zones up above.
The reward -to-risk is favorable and if you can purchase at or in the support zone, you don't have to risk a lot on the trade.
I would place my stop below yesterday's lows and shoot for the higher of the two resistance zones. As long as rumors float, this stock could levitate as well and a push to $14 is quite achievable.
Until next time, just keep trading the charts.
