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I want to look at Microsoft ( NASDAQ:MSFT ); on Friday the
company announced that Steve Ballmer, CEO of Microsoft ( NASDAQ:MSFT ),
was going to retire. So what happens? The stock is trading up big
pre-market,
it opened up at 35.16;
it promptly traded up another four cents and then started to trade down
all day. Nothing against Steve
Ballmer, but this is what the market did, the market voted
by buying this stock, why? Because Steve Ballmer is leaving.
Does the market hate Steve Ballmer? No, apparently the deal was
that the guy just stunk up the joint when it comes to spending money;
he spent like a gazillion dollars on
Skype, how's that working out for you?
Just not a real good
steward of the money, the cash cow that Microsoft ( NASDAQ:MSFT ) has. And so
with him leaving the market is saying, "Hey, they'll
probably I'll get somebody in there that's better,
right?" Someone that's going do a better job. Well here's
what I'm saying; you look at the weekly chart on this,
the stock has been violent, there's no question about it, we can talk
about, well if you bought here you doubled your money.
That's true, if
frogs had wings they wouldn't have sore butts from jumping around so
much too.
But as I look here at the stock,
again, on the weekly chart, I would say, "Okay, well this kind of looks like a pretty
decent
consolidation here, so I'm going to want to buy this stock,
when?" First of all I'm not interested in buying Microsoft ( NASDAQ:MSFT ) but there are a lot of
people that are,
it traded at 345 million shares this last week.
But if you are inclined to buy Microsoft ( NASDAQ:MSFT ), why do you want to buy
in this trading range? Instead, wait for the stock to break out
to a new high; that will give you the sense
that this trading range is over. By the way,
look at the time frame; it's 2013, so this thing
has been trading
in a sideways range for most
of the year. You look at the daily chart and you get a better sense of what
I'm talking about.
I'm saying, if Microsoft ( NASDAQ:MSFT ) doesn't break through, say 36.50,
I wouldn't want to buy this stock.
My suggestion is, if you bought this stock
on the news that Steve Ballmer is retiring,
you need to sell this stock on the news that Steve
Ballmer is retiring, because it's still the same old
Microsoft ( NASDAQ:MSFT ). Maybe they're going to do things a little bit different,
but they aren't Apple ( NASDAQ:AAPL ), they aren't Facebook ( NASDAQ:FB ),
they're still just Mr. Softie.