“Success is a lousy teacher, it seduces smart people into thinking they can’t lose.” – Bill Gates
“There’s no success like failure.” – Bob Dylan
“The stock market knows how to defeat geniuses.” – Richard Russell
Today the high tech Untouchables are to testify before Congressional House antitrust investigation into the market power of major tech companies. FANG On the Hill
Bill Gates, who went through this years ago, looked like he was having the time of his life when interviewed yesterday.
Facebook CEO Mark Zuckerberg has taken a particularly confrontational view toward the government.
He just announced ahead of his testimony that his firm will be taking steps to ensure the breakup of the U.S. government because he believes it has become too powerful.
He stated: “It’s long past time for us to take concrete actions against this behemoth of governance that has gone essentially unchecked since its inception. Unfortunately, those at the top have been repeatedly contemptuous of the very idea of accountability or reform and our only remaining course is to separate the government into smaller chunks to prevent it from forming an even stronger monopoly over the public.”
Can you say, “you can’t fight City Hall?”
This looks like a big inflection point where an irresistible force meets an immovable object.
Mr. Softy topped out at 60 in December 1999… well ahead of the SPX and NAZ in March 2000.
It took 16 years, until October 2016, for MSFT to reclaim its 60 high.
MSFT’s battle with the U.S. government didn’t benefit the price of its stock.
This should be a warning to Zuckerberg.
In the last 4 years, MSFT has nearly quadrupled, striking a high of 215 this month before reversing.
Once MSFT came out of its 7 ½ year (Gann 90 month) saucer base, it exploded.
Is there anything to glean from MSFT’s price action as to gold?
Arguably, gold’s 7 plus year saucer base taken from June 2013 mirrors the 7 year plus base in MSFT.
Can gold advance 3 ½ times above its prior high at 1921 from 2011? I would underestimate gold's breakout to a new record high this month at your own peril.
W.D. Gann wrote, “When a stock or commodity advances into new territory or to highs which it has not reached for months or years, it shows that the force or driving power is working in that direction. It is the same principle as any other force which has been restrained and breaks out. Water may be held back by a dam, but if it breaks through the dam, you would know that it would continue downward until it reached another dam, or some obstruction or resistance which would stop it. Therefore, it is very important to watch old levels of stocks and commodities. The longer the time that elapses between the breaking into new territory, the greater the move you can expect because the accumulative energy over a long period naturally will produce a larger movement that if it only accumulated during a short period of time.”
