MSFT Trade on Sep 19, 2019 09:47 from MarcoG: Tradervue User Stock Trades.

Pull-back play above pm high! All Time High Spike on Buy-Back!!

Requirements:

Gap : >2.5%
RVOL : >1.5
pmVOL : >50 K
avg Vol: > 1M
Vol @ Day : >500 K
Long Term Chart : Possible Pocket or trend already defined.
Float: >20 M
Short Float: Possibly >40%
Institutional Ownership : Possibly > 100%
History of Gap Follower: Neutral
History of former runner: YES
Major ETF movement and strength: Trending
Catalyst : ER beats

Company Description

Sector: Technology
Industry: Software - Infrastructure

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide.

Trade Scenario

Microsoft Corp. shares are on track to close at a new record high on Thursday following the company's announcement of an 11% dividend increase and the approval of a new $40 billion stock buyback program. The stock hit a new intraday high of $141.83 and is currently trading above its previous record close of $141.32 from July 26. "Given $133 billion in cash (~$60 billion in net cash), the move to increase the dividend and share buy-backs should be welcomed by investors," Oppenheimer analyst Timothy Horan said in a note to clients. Microsoft is leading the Dow Jones Industrial Average higher on Thursday, and its dividend hike puts the stock's implied yield at 1.47%, above Apple Inc.'s 1.38%. Microsoft's stock is up 40% so far this year, while Apple shares are up 41% and the Dow is up 17%.

Trade Variables

Symbol : MSFT
Gap : 1.5%
RVOL : 2.55
pmVOL : >100K
avg Vol:23M
Float: 7.52B
Short Float: 0.65%
pmPATTERN : Bull Flag and consolidation
Catalyst : Fresh News

Technical Levels

Support: 140 138.5
Resistance: 140.65 141.68
Inflection: 140

Trade Plan

The all time high level could be a magnet for the price. Once there a consolidation above such level could imply a further move!

Set-up : 15 Min Consolidation, Up trend Continuation
Side : Long
Size : 30 (mistaken, I wanted to start a half size position of my original 30$ risk thus 150 shares. I have then selected half setting 70 but when entered the position I have halved it again @ 30 cause I didn't realise I was already half size..)
Entry : 141.12
Takes : 141.42 / 141.62 / 141.93 / 142.3 (I did a mistake here. No lock cause I had only 5 shares left but still I should have locked half of it)
Exit : 140.92

Comments

MSFT had a nice fresh news for us to trade today! The all time level just behind the corner and the SPY supporting gave me confidence in select the stock and trade it afterwards accordingly to the scenario. I have tried to get filled already at the first retest at 09:34 but missed it for few cents. Held and waited for next pull back. Found a fill at 141.12 I am quite satisfied about that. I would have added in case price would have broken the 141. I had an order at 140.92 for me then to get a full size position with a stop below pm high at 140.65. 60 shares and a stop of 0.47$ makes my 30$ risk. It was not needed cause price held beautifully the 141 level! Once price failed holding the 142 and rejected the 142.5 psychological level I have tried to add for the retest of the 142. The tape gave not good signs of strength thus the 142 became resistance or btw a weak support for a further move. I have decided to lock in some at target 3 (141.90sh). Again added for the same reason and lock more has price definitely confirmed the rejection of the 142. Still long way to go, size today has been my mistake, perhaps once I will finally be stable with a fix risk of 1% of my account I will size properly getting used to the same risk day by day!

What a relief!!