My Opinion of Mr. Softy (MSFT)

A reader (not you mom) asked for my opinion of MSFT – I hate it.

I think he meant my opinion as a trader but I don’t trade MSFT – it isn’t volatile enough to make me pay much attention to it for day trading or even overnight.

My thinking from a swing trade standpoint – always buy it ahead of dividend, get the dividend, and several days later sell it. If you had done that last month you could have had it for 28 and change early in November, been holder of record on the 14th collected your 10 cents a share and sold it several days later for 29 and change. Best deal out there - a little free cash off a profitable trade.

But here are my chartist observations.



Note that even though this is a 2-hour chart the triple tweezer top occurred on three separate yet consecutive days. And each top was at 30. A tweezer top is usually just that - a max top.

Secondly, everywhere you look there are steeples. They signify a difficulty for this stock to go up – remember – seeing steeples in the old days meant you were coming into town and the journey was done – still means that today regardless of the time frame.

Then last Tuesday in the first two hours there was a great opportunity being signaled – that set-up normally means pay dirt and it did - for all of 30 cents - an OK overnight swing trade but there was no follow-through. A 2-hour chart signal generally results in a substantial follow-through but the stock just collapsed again the next day.

So the question has to be – is 30 the max of Mr. Softy? If I were into this stock and wanted to go long I’d let it break over 30 before I even gave it a second thought. If I wanted to go short I’d probably take it now and make 30 and change my stop.

I’d like to thank any readers I do have – I hope I’m being both entertaining and educational. But remember – anything I say regarding any stock is my own opinion. If you do invest in a stock do so for the right reasons – and if you don’t know why you are investing in a stock – don’t do it.