Friday, November 21, 2014

MSFT update

Here is the back link to the prior post.  The MSFT model presented there behaved pretty much as expected.  Here is the recent snapshot.  It's wave count suggests a rally early on Monday that fades and reverses late Monday or perhaps Tuesday and then begins a big move down in which MSFT is very, very unlikely to be moving down by itself.




I was hoping to see a bit more "frame dragging" occur with the rest of the flock given the importance of MSFT stock to investor perceptions and sentiment but at the end of the day I am confident that the herd will turn just like the flock of birds in the youtube which I linked in an earlier post. 

The six frames below were taken taken from that video just before the flock changes direction from moving right to moving left.  In frame one the flock looks like an unstoppable bullet.  In frame 2, some of the birds are falling behind.  The back end of the flock begins to dissociate in frame 2 but the majority of the flock continues in the direction of momentum.  Then the back end pretty much falls apart in frame 3 and the flock in frame 4 is almost perfectly divided between those going right and those going left.  The new direction is spreading through the flock at breakneck speed at this point.  In frame 5 the new direction is established and in frame 6 the entire flock is now heading that way.  The time span between 1 and 3 was perhaps 2-3 seconds but then things began to change with exponential speed and the time between frames 4-5 was no more than 300-400 milliseconds and 6 happened shortly thereafter.



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