Wow, Microsoft!

Just came back from Switzerland today. As I said, it was really an intensive week. Everyday I had to work till almost midnight. There was just too much data to analyze but within a too tight timeline! But I was still  trying to quickly scan through some top line market news everyday. It was my antidepressant, I meant it!

Yesterday was kind of market panic day and I smelled the blood in the streets. S&P plunged over 2%, which has not been seen in over 2 years. Usually in this kind of market, almost everything will drop regardless. But not yesterday. In the contrast, Microsoft (MSFT), the dead stock in many people's eyes, was shooting up over 2%, definitely a street darling at least for yesterday. Wow, I'm really impressed! I feel like I'm a genius as I was just talking about buying MSFT at my last blog. Indeed, I was also quite aggressive lately to buy more MSFT as it has been such a great value stock. You may not know, there are only a very few stocks with AAA rating (4 or 5 I think) in the whole world, the safest stocks you can get. MSFT is one of them and its rating is even better than the US government bond (i.e. safer than the US$). Buying MSFT is just like saving US$ in the bank but with a much higher interest (dividend). Technically, MSFT is even showing an inverse head & shoulders, a bullish setup to go up. If it can breakthrough the near-term resistance at $37.5, it will easily get back to $40 or higher.  I think the downside risk for MSFT is very minimal but the long-term value is huge. Don't miss it.

By the way, if you followed my advice to short MSFT by selling call options when it was around $40 (I did myself), I think it is the time to get out to take the profit. It would be shame to let your profit evaporated along with the MSFT stock strengthening.