Microsoft Held Up Just Fine On Bad Earnings: Bullish For Market

Microsoft held up just fine on bad news. Stock in an uptrend.

This is what I said yesterday in chat to subscribers on MSFT (please oh please ignore all my typing-fast spelling faux pas),

"MSFT reports after the close. My EPS are below the Street for this quarter and the guided quarter. My revenues are below the street for the guided quarter. I think there's fundamental risk. I think the initial move will be down but i dont have a feeling if it holds or if it comes back. Stocks way down and people looking out some. So Im net net neutral on the reaction but more bearish on the print versus expectations.... MSFT will impact things, let's see their guide. But generally there's a chance MSFT can hold on a bad guide and/or the market can hold up or go up even if MSFT doesnt react well."

I think that's what it did.

We take it step by step but generally gauging earnings reactions versus news tells you what we call 'action' and is a great heads-up on where the overall market sits. I've been bullish and we kind of caught the bottom, for now. Stocks holding up on bad news is somewhat confirming of a generally bullish market.

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