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WaveStrength Market Trends for November 21, 2006

Yahoo! Joins the Newspaper Industry


By Ann Sosnowski

Today the Retail Service HOLDRs (RTH:NYSE) dropped to its 50-day Moving Average, even on a slight jump on the Money Flow index.

Taking into consideration current price levels, falling Relative Strength, and historical prices during late November on this retail gauge… we should see a slightly lower price tomorrow on the RTH, followed by a huge drop on Monday.

Once the RTH breaks past current Moving Average support, we should be able to play my declining retail thesis for gains.

I anticipate that Black Friday sales won't be as exciting as many are predicting… especially since many stores are opening at the stroke of 12:01 a.m. Friday morning, which I think will bite them in the… well, you know what.

In other interesting news, the deal that the print newspaper industry has struck with Yahoo! Inc. (YHOO:NASDAQ) is garnering much attention, way more than the deal with Google Inc. (GOOG:NASDAQ), that now looks puny by comparison.

Seven major newspapers have joined with Yahoo! to expand job listings online, as well as allowing newspapers to distribute news and additional content to each other's sites and share revenue.

Interestingly enough, this deal includes Belo Corp. (BLC:NYSE), Hearst Newspapers and Cox Newspapers… but not The New York Times Company (NYT:NYSE) and The Tribune Company (TRB:NYSE).

Yahoo! has the go-ahead to distribute job listings from these newspapers to its own Yahoo! HotJobs service. This is new competition for other more popular job listing sites like Monster.com and CareerBuilder.com, whose existing deals with these same print newspapers will be shifted to Yahoo!'s own Web portal.

Next up on the plate? The consortium of newspapers may expand Yahoo!'s job search feature into a general arrangement to power all search functions on the newspaper's online sites.

This is very interesting news, and a welcome evolution for the recently struggling print industry. I really believe that this will continue to prop up the new Renaissance of print, bringing online and hard copy together.

Additionally, the Dow Jones Industrial Average is moderately flat, and so is the Dow Jones Transports, which closed as a doji formation yesterday… and looks to do the same today.

All in all, it looks like the trading week is practically over. This is normal activity during the week of Thanksgiving.

Expect flatter trading tomorrow.

As a heads up, if you have any important stock or options positions you're holding, make sure you have protective stops set if you're going to be away for the rest of the week.