Chart of the Day: As Microsoft Surges, Let's Trace Its Comeback
Just recently, Microsoft appeared destined to tag multi-month lows.
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Just about a month ago it sure seemed Microsoft MSFT was heading for trouble. After all, the tariff announcements knee-capped the rest of the market and took down all of the mighty tech names on big volume. We call that distribution, when big money managers shed stocks from their portfolios to de-lever or just de-risk from holding volatile assets.
But as we know things change and with it the direction of the market can also move swiftly. Microsoft appeared destined to tag multi-month lows but a strong surge up and the establishment of an uptrend negated that thesis. Further, the indicators have improved greatly and now show a robust rally is underway as the stock reaches all-time highs.
Notice the turn in money flows, which tells us big money is coming back to play and buying dips. That is important.
The ADX in pane 3 is still rising and is well above 40, meaning the trend is very strong; clearly it is up. Stochastics are bullish (momentum) and now embedded, which says dip buyers step in on pullbacks.
We like Microsoft here in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
At the time of publication, TheStreet Pro Portfolio was long MSFT.
