With Yahoo closing at $23 today, it turns out my analysis was right on the money after all. I closed out my position this morning at around 10:30am which I'm pretty happy with. Given the initial overreaction on the positive side I think this trade worked out reasonably well.
That said I believe that YHOO is forming a nice bottom here. We've got the New York Times effect plus the rally attempt on horrific news plus new expectations that YHOO might actually ship Panama soon. I will be looking at Yahoo over the next few weeks to see if any buying opportunities emerge.
I don't play takeovers but it seems to me that Yahoo would be a phenomenal addition to the Microsoft stable.
Note: Apple Computer reported blow out earnings after the bell and is trading up about 5% after market.