April 18, 2007
Stock Du Jour (YHOO) & Random Observations
Tough choppy day — a good time for day traders to lose money. There’s Micron (MU) on the new lows list again. I remember seeing a report from a broker on Micron titled “How Low Can It Go?” and thinking to myself: pretty low! 15 Ideas members McDonald’s (MCD) and Lilly (LLY) on the new highs list along with that relic from the dot com era: priceline (which was definitely not one of my ideas).
Yahoo! (YHOO) wasn’t really the stock du jour, but it has just blown up after hours so I thought I’d feature the chart.
Cat: | Time: 7:01 am (utc+8)
April 18th, 2007 at 1:55 pm
Mr. Chairman,
I’ve seen a lot of so-called ‘bad ticks.’ Do you mind explaining to me how these ‘bad ticks’ happened? Did trade actually took place at that ‘bad’ price?
And in the Yahoo example above (I know it’s after hour), but assuming that I do set a trade saying “If YHOO > $31, then Buy”, would the trade actually executed?
Thanks in advance.
April 18th, 2007 at 2:51 pm
CD: Usually it’s a reporting problem… a trade that happened minutes earlier finally “hits the tape” causing the spike on the chart. It shouldn’t affect conditional orders based on price that are sitting in the market … though I’m sure readers may have share stories where “bad prints” did cause real problems.
April 18th, 2007 at 3:39 pm
Last night KO was a stock du jour and also AMTD. I totally missed out on KO, it’s both listed and such a huge cap.
April 18th, 2007 at 5:56 pm
Eyal: If I did another list of 15 Ideas, I’d consider putting KO on it… looks cheap to me even while making new 52-week highs. I agree with you that even if the activity in KO is unusual, it still has to be seen as an NYSE-listed megacap which makes for a lousy day trading stock.
April 18th, 2007 at 9:05 pm
I figured out why KO is such a good hold. I used to daytrade it…its a horrible daytrading stock, but the fundamental looks good IMHO:
1. MCD up trend
2. Weak dollar & international exposure
3. Secular, noncyclical
4. DIVIDEND
I would own it if I have money.
Hey Chairman,
Mind telling us what your typical day is like? I’m having trouble managing time…
April 19th, 2007 at 10:47 am
Yin: Many people have asked for one of these “day in the life” posts so I’ll write one sometime, but it sure as heck won’t provide you with any clues about how to better manage your time, quite the opposite in fact, it will show you how to become infinitely distracted. ;-)
April 19th, 2007 at 7:42 pm
主席先生你好，在哪里做交易呀，祝福你……，还有深圳指数分析，谢谢！
April 19th, 2007 at 9:58 pm
David: I don’t trade Mainland stocks, and I’m finished analyzing the Shenzhen Composite Index … once it blows up I’ll probably post something knew, along the lines of “I told ya so.”