Sell: MSFT
MSFT has fallen below its 7-month uptrend line, shows relative weakness versus the overall market, and, like the other investor darling of the pandemic era - AMZN, it also shows weakness versus BIGTECH. TPA sees MSFT falling further or, at least, underperforming in the intermediate-term. The chart below shows MSFT’s recent uptrend violation.
![](https://static.wixstatic.com/media/eb4ead_0453fd7a315544ca954be06cf4347bff~mv2.jpg/v1/fill/w_944,h_583,al_c,q_85,enc_auto/eb4ead_0453fd7a315544ca954be06cf4347bff~mv2.jpg)
The zoom chart reveals that the recent tepid rally merely puts MSFT at breakpoint resistance. MSFT versus S&P500 has also fallen below the recent uptrend line, showing new underperformance.
![](https://static.wixstatic.com/media/eb4ead_aaa70847e7e8479f970775c69d3a6a1d~mv2.jpg/v1/fill/w_942,h_587,al_c,q_85,enc_auto/eb4ead_aaa70847e7e8479f970775c69d3a6a1d~mv2.jpg)
The long-term chart of the ratio MSFT/S&P500 shows that the outperformance since March has put MSFT/S&P500 well above the long-term uptrend line setting up a period of a return to the long-term normal or a period of underperformance.
![](https://static.wixstatic.com/media/eb4ead_86fabff9ed284faf8943e88cfbf8071b~mv2.jpg/v1/fill/w_941,h_585,al_c,q_85,enc_auto/eb4ead_86fabff9ed284faf8943e88cfbf8071b~mv2.jpg)
![](https://static.wixstatic.com/media/eb4ead_b56f5fa3638945eebea56ebcb095dc1a~mv2.jpg/v1/fill/w_948,h_596,al_c,q_85,enc_auto/eb4ead_b56f5fa3638945eebea56ebcb095dc1a~mv2.jpg)
Finally, the ratio of MSFT/TPA BIGTECH (top 8 names in the Nasdaq 100) shows that MSFT has actually been underperforming its giant peers since June. TPA will use today’s opening price as cost for this recommendation.
![](https://static.wixstatic.com/media/eb4ead_286c516938a44ccca15ac3773b084933~mv2.jpg/v1/fill/w_951,h_582,al_c,q_85,enc_auto/eb4ead_286c516938a44ccca15ac3773b084933~mv2.jpg)
Sell: AMZN
AMZN has fallen below its 7-month uptrend line, shows relative weakness versus the overall market, and, like the other investor darling of the pandemic era - MSFT, it also shows weakness versus BIGTECH. TPA sees AMZN falling further or, at least, underperforming in the intermediate-term.
![](https://static.wixstatic.com/media/eb4ead_8221c3ee42ad49979ba3d431b75dcea4~mv2.jpg/v1/fill/w_959,h_588,al_c,q_85,enc_auto/eb4ead_8221c3ee42ad49979ba3d431b75dcea4~mv2.jpg)
Chart 2 shows how AMZN exploded as the Pandemic unfolded and its services became a mainstay of life with Covid-19. The crisis is far from over, but other companies have stepped up to deal with the crisis. AMZN is precariously situated after its trend break.
![](https://static.wixstatic.com/media/eb4ead_50dbab76355f4ff3831aaf72493fb819~mv2.jpg/v1/fill/w_950,h_588,al_c,q_85,enc_auto/eb4ead_50dbab76355f4ff3831aaf72493fb819~mv2.jpg)
As with MSFT. AMZN/S&P500 has fallen below the recent trend (chart 3) and is now far above the long-term uptrend (chart 4). Charts 3 and 4 hint toward upcoming underperformance versus the overall market.
![](https://static.wixstatic.com/media/eb4ead_c8d0e222b4d342d8b70638ded495cd91~mv2.jpg/v1/fill/w_960,h_586,al_c,q_85,enc_auto/eb4ead_c8d0e222b4d342d8b70638ded495cd91~mv2.jpg)
![](https://static.wixstatic.com/media/eb4ead_aa610b6587d5424d9d4d44cf92bc40ef~mv2.jpg/v1/fill/w_941,h_588,al_c,q_85,enc_auto/eb4ead_aa610b6587d5424d9d4d44cf92bc40ef~mv2.jpg)
Finally, the AMZN/TPA BIGTECH reveals that AMZN has begun to underperform its giant peers. TPA will use today’s opening price as cost for this recommendation.
![](https://static.wixstatic.com/media/eb4ead_875861722bc94e5abff5250e4635c767~mv2.jpg/v1/fill/w_948,h_584,al_c,q_85,enc_auto/eb4ead_875861722bc94e5abff5250e4635c767~mv2.jpg)
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