MSFT technical outlook – another signal for long-term trouble

Another Icon with a look alike situation – MSFT needs to go lower for at least 1 if not 2 weeks. MSFT made in 2000 a 20.15 low- looks as if we have to get down their again. But again, an interesting observation is that we have the 200 month MA at 21.50 and those are levels we have not tested in over a decade, which is not good if we close below them on a monthly basis. For now, it will be a support short-term (SPX is below).

The tide is turning medium to long-term. That is an observation I make while surfing through all these charts. We will have a substantial rally soon but do not make the mistake and believe for one moment that you can just sail through this. The fundamentals are too drastic. We have to go through a severe economic contraction and we are urged to learn this time that we cannot repeat the mistakes of greed over and over again. For your own sake, use that rally to change your 401’s to a non-equity portfolio. Take a chart of the NIKKEI of 20 years and pin it somewhere you can see it everyday to remind you what’s ahead for the investors the same is true. I am afraid to say Buffett is wrong with his assumption that this is an investment opportunity.

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~ by behindthematrix on October 22, 2008.

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