Online Stock Trading | MSFT and YHOO Dominate Trading

MSFT and YHOO Dominate Trading


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2:15pmEST  Step aside Jobs report, MSFT and YHOO take Center Stage

Futures received a jolt when MSFT announced a bid to takeover YHOO for 45 Billion, yes 45bn dollars.  The Futures market took the news a bid up all index futures heading into the release of the January Jobs report.  It wasn’t until the weak January report that futures took a hit.  Let’s fast forward to the end of the day, stocks were able to finish higher.  However the downside, volume on the NYSE dropped more than 20%.  MSFT and YHOO accounted for half the trade on the NASDAQ, no accumulation there.  This market continues to lack the necessary accumulation, even with low volume to get this market moving.

This market is going to begin sucking the retail crowd into stocks.  Jim Cramer wouldn’t have a show if he told what the little guy should be doing:  NOTHING and in CASH!  Madd Money viewers should start from scratch, get into 100% cash and go get a copy of “How To Make Money in Stocks” by William O’Neil (CANSLIM).  The next book should be “Monster Stocks” by Boik.  In fact, EVERYONE should own a copy of these books.  I recommend the first edition of HTMMIS, the original.   How many sequels are better than the original.

Gio a long time reader has finally made a comeback, posting comments/questions.  Charlie I appreciate the question!  Please do comment!

This market is still searching for a bottom.  As I scan long term weekly charts I see very few stocks that are not climatic looking.  In addition to the charts, the VIX hasn’t shown us MAX fear to even signal a market bottom.  We need to be above a reading of 40 here to get a sense a bottom has been put in.

Its not all that bad, if you are well prepared for this market you will weather this storm and be ready when the next bull run begins.  When we resurface from this terrible market for longs, we’ll see stocks zoom 1000% or more just like in ‘03.

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Comments

One Response to “MSFT and YHOO Dominate Trading”

  1. MSFT News Aggregator » MSFT and YHOO Dominate Trading on February 2nd, 2008 4:31 pm

    […] Original post here […]

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