REVISITING MICROSOFT

This is what we said in our 13 OCT 2008 WAVES.GLOBAL update.
“The last few trading weeks has pushed the MICROSOFT over the edge back to Dec 2000 low. Technology is an early economic sector and should underperform most sectors, barring financials and discretionary, which are part of the same early economic cycle sector. We will not be surprised if the stock actually tanks down below psychological 20 to near 14 levels. This is classic A-B-C circle corrective down, whose time seems to have come. Now if Microsoft cracks, most technology sector would see selling pressure. This is why OCT low might need more than a few trading sessions to hit some significant base. And we will not be surprised if OCT low actually stretches till the last week of OCT and maybe further.”
What happened. Prices are now at 17 and nearing our targets (ILLUSTRATED). And the NEWS as usual is catching up. “MICROSFT firing 5000 employees” is all over the news.
About INDICES overall. All of NIKKEI, DOW, DAX, SENSEX, S&P are nearing previous lows (OCT-NOV 2008) and we continue to look at a potential reversal based on our inverted cases we have been highlighting the last two issues.
Enjoy the latest WAVES.GLOBAL
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ORPHEUS RESEARCH AT REUTERS – UNITED KINGDOM
ORPHEUS RESEARCH AT REUTERS – USA