Yippy, Inc. (YIPI)

[sbsteve]

YIPI technical review (buy / hold / sell)
I would like to keep this as short and simple as possible as to not get too many people confused.
First, we need to answer this question. What does the RSI indicator tell us?

The RSI ranges from 0 to 100. An asset is deemed to be overbought once the RSI approaches the 70 level,
meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30,
it is an indication that the asset may be getting oversold and therefore likely to become undervalued.
Now that we know what the RSI means, let's do a little bit of role playing. When a stock goes up, the RSI is also going up.
When the stock goes down, the RSI is also going down. But what happens when a stock doesn't go up or down and just consolidates?

Great question. Here's the answer. If a stock is consolidating and finds a tight channel to trade between,
then the indicators like the RSI and MACD start to level off and revert back to their neutral points.
For the RSI that point is at 50. For the MACD that point is at zero.
Keep in mind that the RSI and MACD work in the same ways in terms of depicting what the market is telling us.

RSI from 0 to 100
>= 70 means getting overbought -> likely be getting overvalued -> good candidate for a pullback
<= 30 means getting oversold -> likely to become undervalued
RSI neutral point is at 50
MACD neutral point is at 0

So what does this mean for YIPI?
YIPI is doing exactly what a stock should be doing in this situation. YIPI was currently on a pullback and as this pullback
has occurred the MACD reverted back to a undervalued point (-0.001).
Since the last run, YIPI's RSI has been declining but at a healthy pace back down towards a undervalued point - now at 46.37

So is YIPI technically looking bad? Absolutely not and we all should be happy with the results we are getting even
if it is boring to wait. One of these days, news is going to be released or enough buying pressure is going
to come in to entice investors to buy. As for now, YIPI is holding it's gains extremely well and there haven't been many large sell off's.
Chart link: http://stockcharts.com/h-sc/ui?s=YIPI&p=D&b=5&g=0&id=p69457145302

We all know new deals, a buyout and lots of further things are coming our way and when it does become public, YIPI is going to have plenty of room
to run up because it's indicators are undervalued.