Anyone else think MSFT is overbought?

Looks like you might have shorted at the right time.

Looks very bearish, shame I didn't get in. Looks like it was going toward the $25-26 resistance, but today's close looks very bearish.

Perhaps an evening star doji setup?

Let us know how it turns out.

-troll

 

The whole market is overbought !

 

Looking real good today after making a minor double top.

Probably looking at short term top which is why I took my money on that gap open "island reversal."

 

Precisely!

 

What worries me about Overbought markets is that they can stay that way for a long time so it's hard to short into them with any great skill. I don't trust ANY indicators so I'm flying blind.

 

I was just going to post the whole market is overbought, but I see that someone else beat me to it.

 

You did fine. look at the balance sheet/financial statement. They squander shareholder equity.

I would not be long MSFT.

 

In the past 5 years the company did suck and seemed to work only to realise Ballmer-Gates' expensive dreams of investing in a multitude of cash-drainer projects and pay them huge special dividend when Bush cuted dividend taxes. Yes, very bad time to be long Microsoft back then.

Balance sheet reflect the past. Investing is about forward looking.

I'm no MSFT fan boy either. But i tryied their Windows 7 for months on a couple of machine and i got f*** impressed. Huge buzz all over the internet too.

They started to realize that it is useless to try to fight head-to-head against Googgle and cut back expensing so much in that department.

Xbox basicly won the console war this generation if you exclude the Wii, long term prospect for the next generation consoles is bright with their project Natal, and Wii owner (which i am) realising there are no freaking good games on this machine with 1998 graphics!

But you can trade it however the f*** you wanna trade it, i don't care. Was just saying this bad company is becoming good again. You can sell it short term, there is a pullback, big ceilling at the 24.50 level, you can buy it back may be at 23 or 22. But so is the whole market that shouldn't make a big up-move for the whole summer, and you might get bigger swing with S&P futures following the very same pattern than with MSFT.

 

On April 23rd at $5.45 DDRX became fully overbought. Since it had gained over 1200% in less than month, this had to be the short opportunity of a lifetime!

Anyone shorting at the close that day .05 cents below the 52-week high of the previous day never saw a profit. I wonder how many of them stayed short, or continually added to the position because the higher it went the more overbought it was and the more ridiculous the price became? (It made a new 52-week high Tuesday @ 24.65 and didn't even pull back to the trend line before bouncing yesterday.)

Shorting "overbought" can be one of the most profitable strategies around, just be sure you have a track record of planning your trades and sticking with your plans

 

I completely agree NoDoji, in fact it's a proven fact. You can make money, faster as it takes people no time at all to sell than it is to buy, especially if they've already been burned.

When 'shorting' in oversold conditions, I like to do not go all out and instead add to my position. In the event I'm wrong, I can average in at a good level, even a pull back will b/e worse case, unless of course it pulls a pyscho pop-up/run, which never happens with what I trade.

-troll