Help Wanted:
Microsoft, once the world’s largest company, has now slipped to third and is one of just 3 stocks with a market cap north of $3T. For how well the software space is doing, one would have to look all the way down to the 18th-largest name on the planet in ORCL to see the second-biggest software name. We can look at this MSFT dilemma with a bullish or bearish slant, and the former would be to think how much better the IGV would act if Mister Softee got its act together. Below we overlap on one chart the PRICE action of both MSFT and the IGV and it is easy to see the stark difference. The bearish argument can be made peeking at the MONTHLY MSFT chart here and notice how incredibly this traded above the overbought 70 RSI number, proving overbought does not mean overdone PRICE-wise. But this is now recording its first bearish MACD MONTHLY crossover in 3 years and this was a best-in-breed play with evidence showing between May 2016 and December 2021 it fell in consecutive months just 3 times (notice that run ended with consecutive doji candles in November-December 2021). Is it time to hang a “help wanted” sign in front of the Redmond WA office? Software overall would appreciate its participation.