The Smart Money’s egregiously misplaced faith in Marissa Mayer has taken on a life of its own, giving us a possible shot at the juiciest shorting opportunity we’ve seen in a long while. We’ve been cautious about diving in prematurely, but we should remain so for the moment as the stock continues its push toward the outermost fringe of sanity. Technically speaking, that would imply an exhaustion spike to the 32.83 target shown. Camouflageurs can take a shot shorting the 29.83 midpoint resistance (see inset), but my gut feeling is that the stock will pop through it and head for the wild blue yonder in the weeks ahead. _______ UPDATE (September 24): The stock has plummeted from a 31.10 high that fell well shy of my 32.83 target. However, it is likely to pick up at least some support if and when it comes down to the 29.76 midpoint pivot associated with that number. We’ll back away for the moment, since I’d rather be shorting this dog on strength rather than weakness. ________ UPDATE (11:35 a.m. EDT): The Crime Syndicate allowed the stock to go no lower than 30.02 before goosing it into the ionosphere this morning. Since the original 32.83 target is once again in play, we’ll let the stock finish this rampage before we short it aggressively as originally planned. ______ UPDATE (September 26, 1:30 a.m.): With yesterday’s 32.03 high, YHOO inched closer to our target. If the stock is trading within a dime of it today or tomorrow, bid 0.75 for eight December 28 puts. This is a guesstimate that could prove too stingy, but I’ll update here and in the chat room with further guidance if the puts are trading beyond our reach. _______ UPDATE (12:24 a.m. EDT): A presumptive last-gasp rally has crushed put prices, making them an easy buy for perhaps 0.63-0.65. Please let me know in the chat room where you filled the order so that I can establish tracking guidance.
