Microsoft Replicating 1987 SPX Chart
Since Microsoft bought ChatGPT back in March 2023, the price of 
MSFT stock has gone on to replicate the same pattern as the 1987 S&P500 stock market rally.
Does it mean anything all by itself? No. It still needs a catalyst for the drop to happen. The 1987 stock market crash had many triggers and catalysts and the drop was a sharp 40% from August 28th, 1987 to October 19th 1987.
What would cause a sharp 40% drop inMSFT? You all could type in your guess in a reply to this chart. It could come about under a variety of situations, but it would take an act of Government regulation or a major sea-change in laws or the business environment.
When you see people posting "overlays" of the market to past debacles, you will find almost NONE of them work.
Last year in January I posted a pattern where
TSLA was mimicking the fundamental and technical price pattern that 
MCD McDonalds had from over a decade ago when it fell 75% on a rough patch for its business. It turned out to be identical and TSLA rallied over 150% last year just exactly the same as happened to MCD. I'll post the link down below for you to view.
The overlay here betweenMSFT and the 1987 
SPX is pretty amazing but we have no catalysts to make it drop. Stay tuned on any weakness and look for cheap hedges (long term puts out to July-Oct-Dec for this year). Don't spend more than 1% of an account to hedge a position, but if you hedge it correctly you can protect against a large decline without much cost to a portfolio.
Here's hoping this pattern doesn't 'pan-out' because it would be or could be very disruptive to the markets.
Wishing you all health and success in the markets this year and thanks to TradingView for all of the great tools for doing research!
Cheers,
Tim
Friday, February 23, 2024 8:59PM EST
MSFT stock has gone on to replicate the same pattern as the 1987 S&P500 stock market rally.Does it mean anything all by itself? No. It still needs a catalyst for the drop to happen. The 1987 stock market crash had many triggers and catalysts and the drop was a sharp 40% from August 28th, 1987 to October 19th 1987.
What would cause a sharp 40% drop in
MSFT? You all could type in your guess in a reply to this chart. It could come about under a variety of situations, but it would take an act of Government regulation or a major sea-change in laws or the business environment. When you see people posting "overlays" of the market to past debacles, you will find almost NONE of them work.
Last year in January I posted a pattern where
TSLA was mimicking the fundamental and technical price pattern that MCD McDonalds had from over a decade ago when it fell 75% on a rough patch for its business. It turned out to be identical and TSLA rallied over 150% last year just exactly the same as happened to MCD. I'll post the link down below for you to view.The overlay here between
MSFT and the 1987 SPX is pretty amazing but we have no catalysts to make it drop. Stay tuned on any weakness and look for cheap hedges (long term puts out to July-Oct-Dec for this year). Don't spend more than 1% of an account to hedge a position, but if you hedge it correctly you can protect against a large decline without much cost to a portfolio.Here's hoping this pattern doesn't 'pan-out' because it would be or could be very disruptive to the markets.
Wishing you all health and success in the markets this year and thanks to TradingView for all of the great tools for doing research!
Cheers,
Tim
Friday, February 23, 2024 8:59PM EST
Nota
Here's what happened after publishing this "overlay" pattern in
MSFT which mirrored the 1987 stock market up until the peak.
It takes a pin-prick to pop a bubble and there hasn't been one yet.
Wishing us all good health and peace.
Cheers,
Tim
Tuesday, September 10, 2024 1:59PM EST
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