Bullish Jim asks the question - why would anyone buy YHOO over GOOG? And then he makes a fundamental case for GOOG versus YHOO and GOOG wins hands down.
I say if I look at these two charts side by side it is obvious which one I'm going to buy - I'm going to buy the one with the most momentum. The trade for the last 18 months has been buy the dips - sell the rips and until that changes that's how you should play.
GOOG looks like it is flattening out after its recent move to 500. Of course after a strong down month it usually has a strong up month so March may be a lot better for it. Another thing to look at is the way the volume is just dropping off so severely. I think everyone who needs to own GOOG owns GOOG and there is very little retail or wholesale interest at this time.
YHOO on the other hand is just coming out of a dip and is now showing a cross over formation. There's a good possibility that YHOO might pull back after two strong months so be ready if that starts happening. Notice that the volume in YHOO, while not as large as GOOG stays relatively stable.