Time to Sell Microsoft Stocks?

Market Leader informed

Microsoft CEO Steven Anthony Ballmer decided to sell this corporation's stocks worth 1.3 billion US dollars in total and did so late last week.

 Steven Ballmer believes that his investment portfolio needs risk diversification, and as a result, sold about 50 million stocks. Besides, the current year is about to end and relevant taxes will have to be paid. According to him, he simply complies with the expected tax burden and, moreover, is going to sell another 75 million of Microsoft stocks by this year's end.

 Steven Ballmer holds about 350 million stocks of the corporation he is employed by. Their total worth is about 9 billion US dollars. Owing to his work at Microsoft S. Ballmer became a billionaire. At close of 2009 Forbes ranked him among top thirty richest people.

 Analysts find it crucial to take into account that the CEO is selling his corporation's stocks as he knows the company from the inside. There is no doubt left that stocks sold by the CEO will trigger a pullback. However, other factors also have to be considered before deciding to buy or sell stocks.

 

Analysts of the Market Sentiment Analysis Department within the Masterforex-V Trading Academy point out that Bar A with a long upper wick in the weekly chart represents weakness that can be treated as a suspense in the rising move rather than a reversal of the trend. The daily chart adds more clarity. Over the past two weeks the price broke the August high and, later, July highs. Here many traders fixes part of their profits while buyers that were locked for some time got an opportunity to close their positions at breakeven. Sales peaked during the last three days. Bar B showed weakness by closing at a low with increased volumes, while Bar C that closed in the middle with a simoilar volume points to buyer activity. Therefore, Microsoft stocks don't look weak in the daily chart. The pronounced growth dynamics of S&P500 and the general rise in the US stock markets suggest that the pullback is unlikely to be deep and that the stock will continue rising in the future. 

 

You are free to discuss this article here:   forum for traders and investors