Here’s what needs to happen next week for the market to soar. Check Apple ($AAPL) and Microsoft ($MSFT) (October 25, 2019)
MSFT DIA AAPL MSFT AAPL
I want to just take a quick look at Microsoft ( NASDAQ: MSFT ) here. This stock has been trading in a pretty dramatic sideways range if you want to call a sideways range dramatic. It’s a very, very prolonged sideways range here. All the while the 200-day moving average has gradually been catching up with the stock, the 50-day is moving sideways. We like to see this happening in an uptrending stock.
The company reports earnings on Tuesday after the bell. A while ago, maybe almost a couple of months ago, Cramer featured some of my work on Mad Money and I had said that with the Dow ( NYSEARCA: DIA ), if the Dow ( NYSEARCA: DIA ) is going to break out what we really need to see is Apple ( NASDAQ: AAPL ) and Microsoft ( NASDAQ: MSFT ) playing along; I won’t go into all the details as far as why I came to that conclusion but I still feel that way. I will reverse it, if Apple ( NASDAQ: AAPL ) and Microsoft ( NASDAQ: MSFT ) are breaking out and working well then I think the broader market is going to start working well too, particularly with the transports starting to kick into gear.
So here’s the thing, we’ve got Apple ( NASDAQ: AAPL ), they started moving really nicely, it was around 220.00 or so when Cramer did that, I think it was around there, it doesn’t matter. Since then the stock is up 11 or 12 percent so it’s been a really nice move here on this stock. But Microsoft ( NASDAQ: MSFT ), meanwhile, has just kind of meandered.
So this is the deal, it would be nice to see this kind of tighten up. I don’t actually really like the fact that the highs have been a little bit higher, I would prefer to see even more of a squeeze here, so to speak, but that’s not what we are getting. If Microsoft ( NASDAQ: MSFT ) reports strong earnings and it breaks out above, say, 142.00 this would be my suggestion, watch how it closes. We need to see the stock break out and hold that breakout. There have been a lot of breaks out that have been failing. We need to see one hold. If Microsoft ( NASDAQ: MSFT ) can do that on the 29th, if Apple ( NASDAQ: AAPL ) can do that on the 30th we could have some market moves here.
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