Here’s my take on Microsoft ($MSFT) (January 26, 2022)
MSFTI want to take a look at Microsoft ( NASDAQ: MSFT ) because it really is a microcosm of what is happening in the market.
If we look at the weekly chart here, the stock, for the first time in a long time, is back down at the 200-day moving average, it’s testing, so far it’s holding up. However, I don’t care what your time frame is as far as your holding period. Every long-term investment starts with a short-term trade, you buy it at one point or another. If you want to buy Microsoft ( NASDAQ: MSFT ), you’re buying it at the 200-day moving average, a bunch of other people are too, which is why it is rebounding.
But if we look at the daily chart you will see that there are actually a lot of eager beavers who are selling. This stock had been trading down for quite a while and then it closed down here yesterday. The company reported awesome earnings after the conference call, before then it actually traded down. And then it ran up at the open, about 6.0-6.5 percent, and then at that point the bears took charge, the bulls kind of ran out of steam.
Here’s my point, you don’t want to be messing around with this thing. You don’t want to be buying it here unless you are trading volatility, something like that. But this stock, and so many more, are still just grinding around. They are oscillating, doing nothing but sucking money out of the market. Don’t let that be you, okay? Just stay out of the way, let these stocks trade. Let them set up again, and then you can go buy them and you will be buying them right as opposed to buying them right now.
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