MICROSOFT CORP
Long

Microsoft at the 50-day SMA

747
Yesterday we focused on Alphabet at the 50-day simple moving average. Today, we'll look at Microsoft.

MSFT has risen steadily since breaking out of a high basing pattern in October. Monday's crash brought it back down to a near-term peak around $168 in mid-January. It also tested the 50-day moving average for the first time in four months.

MSFT is obviously a huge member of the indexes, so has some broader correlation risk. However it's different from other tech stocks like Apple and the semiconductors that have major China exposure.

The software giant's fundamentals have also been very strong lately as businesses like Azure keep getting bigger.

Like GOOGL, MSFT is a classic mega-cap growth stock with a dominant position in the market and the U.S. economy. Buying a market-based (not company based) pullback like this is classic trend-following.

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