Revved-Up Microsoft Is the Engine that Could

The Morning Line [Published Sunday, November 12 at 7:30 p.m. EDT]( Revved-Up Microsoft Is the Engine that Could U.S. shares continued to climb a wall of well-justified worry last week, propelled with sufficient force to suggest new all-time highs are likely. Notice how Microsoft's push into record territory on Friday occurred after the stock had spent nearly six months consolidating at the red line. This is a 'midpoint Hidden Pivot', according to our proprietary method of analysis, and MSFT's decisive move above it has freed the stock from the pivot's gravitational pull. This is significant, because as long as Microsoft shares are moving higher, the broad average will follow in their vortex. This is no longer true of AAPL, which until recently was our most important bellwether for stocks around the world. Although it is still the most valuable company traded on any exchange, sales growth for the near-to-intermediate term is no longer assured. That's because iPod sales have encountered strong headwinds in China and are certain to falter in the U.S. when -- not if -- the economy enters a recession. One has already begun for many Americans, most recently the 10% of Citicorp's workforce about to be laid off, as well as tens of thousands of jobs targeted for extinction at 3M, Tyson Foods, Lyft and Whole Foods. Even Walmart is laying off 2000 warehouse workers across several states. Rock-Solid Revenues Microsoft will not be inured to the effects of a slowdown, but putting Windows and Outlook software on a subscription basis that requires annual renewals will help insulate the company from economic hardship, even if severe. For that reason, Microsoft should be regarded as the bluest of blue-chip companies, a profit engine even more powerful and reliable than Apple. The chart shows a bull-market target for MSFT at 430.58 that implies a 16.5% jump from the current 369.97. In comparison, to achieve new record highs, the S&P 500 would need to rally 9.5%, from 4,415 to 4,817, to set a new record. As for the tech-heavy QQQ, an ETF that tracks the 100 largest Nasdaq stocks, it would need to climb 2.7% from a current 378 to top the old high at 388 recorded back in July. The steep trajectory of Microsoft's rally suggests it is well capable of dragging the broad averages higher, or at least keep them buoyant, for perhaps another four to six weeks. [View Post on the Rick's Picks WebsiteÂ]( Here's How to Jump In... Not sure of the best way to get started? Follow these simple steps to become a consistently profitable trader. Step #1Learn The Basics for FREE! [Impulse Leg Toolkit]( ... [Butterfly Spread Strategy]( [Fundamentals of the Hidden Pivot]( Step #2 Get Rick's Trade Recommendations [Free, Timely Touts]( ... ['Requests' Sessions]( [Free Trial Subscription]( [Select a Subscription Plan]( Step #3Learn to Use the Hidden Pivot System Yourself [Fundamentals]( ['Mechanical' Trade Set-Ups]( [']( Trade Set-Ups]( [The Basics, Plus All Six Trade Set-Ups]( [Start My Subscription]( Copyright © 2019+ Hidden Pivot Enterprises, All rights reserved. Disclaimer - This email is for information purposes only and should not be considered personalized advice or a solicitation to buy or sell any securities.   [Unsubscribe]( Rick's Picks - Hidden Pivot Enterprises PO Box 270646 Louisville, Colorado 80027 United States