Tag: msft

a long term position on MSFT was closed earlier this year around 220, it was a good ride. and, frankly, I had forgotten about MSFT ever since but when I was working on the NASDAQ chart I saw how strong it was so curiosity had killed the cat and I took a peak at MSFT. YIKES .. what could have been LOL …

but, I still believe Sir Isaac Newton was correct THAT gravity will pull us back down .. so, I got out my eraser and did the geometry we were taught in elementary school on how to create circles out of lines … from there, we use the center of that circle as our “gravity center” and work geometry from there …

I show the steps below … seemingly, the top of the radius circle is a good target and, believe it or not, I have used it before. so, holy smokes, another 10% from here? sheesh … but, those targets are “real” in that if you look at the arcs that came from the gravity center you’ll see that price hug along those arcs VERY nicely so, figuratively, we have a “good arc” so those targets above are …realistic.

now, that being said, as I was looking (studying) the chart my eye showed me a pretty regular “measured move” as the price crept up the arcs. those are the blue arrows … also, note that the measured move is harmonic w/ the initial move off the bottom at .618. the higher targets – if it keeps on going – align w/ 1.618 times the blue measured move.

if you look on the monthly you will see (even from the low in 2009) that the blue measured move has been present at every pullback. yes, you read that correct, every pullback except the most recent was the first to fail since this entire bull market run …. does that mean we most definitely pullback from here OR do we explode another 10% into the areas shown above? don’t know … but we are most definitely in rarified air up here.