Yandex: You Can Trust We Will Stay Onatopp of Things

Dating back to late-last year, Yandex, the Russian internet search giant (akin to Russia's version of Google) was a more speculative long-term investment idea for VIP Members.

Our thesis centered around the weekly chart, updated below, which was sporting a defined inverse head and shoulders bottoming formation after a few years of disappointing action. Simply put, we knew where we would likely be wrong on the thesis, and we also regularly update whether the thesis is playing out properly to the upside. 

In light of this morning's news that Uber and Yandex are merging their operations in Russia to create a new company, the stock is higher more than 16% as I write this. 

What is most important for us, technically, is that the stock made a meaningful higher low after breaking its original bottoming pattern. This is a key development for bulls because you will note how elusive it can be at times--Just witness the manner in which CMG gave up the ghost for its own bottoming attempt this year.

In other words, it is often a tedious process to try to identify a bottom. Patience and a methodical approach are required, which often stands in stark contrast to the "win all the time and win now" ethos reinforced daily on social media and by scatterbrained charlatans. 

But in real life, with real money, all you can do as a speculator is define and manage risk in real-time as the price action unfolds. And with YNDX sporting tangible signs of a major bottom in place in the face of Russia lagging this year due to geopolitical issues and/or oil, it is all the more impressive. 

We remain bullish YNDX over the long-term and would expect an eventual retest of the of the 2014 highs of $45.42. 

More on the market in my usual Midday Video for Members.