I started to talk about buying Yahoo (YHOO) 2 years ago when it was traded around $15 and one of the reasons was its big stakes in Alibaba. If you have bought Yahoo, congratulate to and pat yourself at the back but you should sell it tomorrow. Why? Tomorrow is the last day before Alibaba's IPO on Friday, Sep 18. In Wall Street, the famous saying is Buy the rumors and Sell the news. It means people usually become very euphoric prior to the event actually happening but then quickly sell when the event materializes. Yahoo has shot up quite a lot in the past couple of weeks due to the expected Alibaba IPO. Based on my past experience, there is a good chance that YHOO will be sold hard on the day when Alibaba starts being traded at IPO.
Sell YHOO tomorrow!!
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