With the successful launch of After Hour’s with The Option Addict, I am pleased to say that I am (finally) pleased with the iBC roster, suite of products and services to meet the demand of my dear, loving, readers.
We have the crew at 12631.ppt.ibankcoin.com/learnMore/”>12631 providing up to the minute market analysis and research, providing members with picks. And now we have The Option Addict on staff teaching people how to find these breakouts, layered on top often ignored option strategies. And, of course, we have The PPT tools to help you find the ideas and share them with other responsible members of the most distinguished online investment club, in the history of the world.
With that in mind, I’d like to point you into the direction, yet again, of YELP.
As you know, I’ve been bullish on YELP since $15. I knew it was a winner, because I found the service to be invaluable in real life–just like GOOG, Z, and TRIP. I bought the stock, for the 4th time, before earnings at around $41. The stock exploded, hitting a high of $60, only to come slinking back down to $47.
As you can see from the numbers above, YELP flagged OVERBOUGHT by The PPT algos on 8/2, at $57. I ignored them because I am emotional about the stock. On 8/13, it flagged OVERSOLD on our 3 month and 6 month algos, repeating these flags on 8/19 at $49. At that point, I made a decision to buy more, even though the stock was under assault, even though the market was weak.
Here are the 6 month OVERSOLD levels. In layman’s terms, based off 4 signals, had you bought YELP when PPT flagged it OVERSOLD, you would’ve made 16% over a 10 day holding period, 4 up, zero down.
When the market cratered the other day, YELP was up. It didn’t care that the market was down. It had other plans. This, to me, was a sure sign that the stock was healthy and ready to pop, whenever the market recovered. As you can see by today’s pin action, the shorts are being ramrodded into small boxes and kicked into the sea.