The Final Push Higher This Week?

So last week I told you it was going to be risk on all the way to September 30th and that we had two catalysts that the market was going to be watching at that point. That's next Wednesday. One would be the PCE report which the Fed uses as its primary gauge on inflation. And the second one was going to be Micron's earnings ticker MU and that was going to speak to the memory stocks as well as the overall AI trade. And we've seen a lot of stocks exploding higher. And specifically, one that I had predicted would run all the way up to $530. We're not there quite yet. And that's why I'm making this video is Microsoft. It's a significant part of the AI story. And I'm going to give you an explanation as to why it's been running up. But I'm also going to outline the technicals and the potential brick wall that we're getting ready to hit. I believe that there could be some significant selling camped out right above the price point that we're at right now. And so I'm going to give you some fresh technicals on Microsoft. And we're going to cover the overall spy because I think it's important to be looking at individual stocks within the context of the overall market and the spy itself is potentially positioned to run up and hit a very important fib level. Both of the technicals I'm going to be giving you are based on fib theory. We're getting ready to hit some areas of resistance and I want you to be aware of it. Welcome to Wall Street. This is the Stocks with Josh show. I wanted to highlight again the stock screener for you guys. Now, this is my proprietary tool that I built to identify small cap lowflat stocks that are getting ready to have explosive moves higher. And in regards to the stocks that it finds this week, we've been stacking some huge winning plays. Let me take a minute and show you that chart. So, this is my friendly screener. And on Monday, it identified VRME and it had a 100% move largely from market open till high of day. And then on Tuesday, J A GX was a 1,367% flyer. These are small caps that can have the potential of massive moves. This was unusual. It just shows you that small cap plays are working right now. And then Wednesday, ARTL. This was a 290% winner. And then Thursday, PMX, a 181% mover. And then today's pick, MSGY, which moved 436%. Now, I want to show you that under this percentage, there's the alert time. This alerted at 9:32 a.m. 2 minutes after the market opened, this was alerted. Take a look at the move on this play. You would have got in at around $2 right as the market opened and it ran all the way up almost to $12. It was $1142. Massive, massive opportunity. The friendly screener has been firing at above 100% wins all week long. In addition to that, I released a brand new tool for my community called friendly patterns. This is a tool which allows you to recognize candle patterns on popular stocks that lead to greater profit. Take a minute and watch this video. >> Inside the Stocks with Josh Discord, you never trade alone. Every week, Josh and his crown traders have 11 live sessions trading the market moves with you in real time. And now trading alongside us just got easier. Our brand new pattern tool scans the daily, weekly, and monthly charts. Flags, wedges, head and shoulders, hammers, more. Every setup comes with the plan already mapped out. support and resistance, where it confirms and where it fails. You get alerts whenever a setup confirms and everything is sent straight to your Trading View chart to streamline your experience. It's only inside the Stocksswithjosh Discord. Join us at stocksswithjosh.com. Don't miss your chance to take your place on Wall Street. In addition to that, I live traded with my community this morning and we got into Microsoft right at the open and this thing absolutely exploded higher, giving a lot of people a near 200% return. Let me know in the comments section if you made some money live trading with me today and stop trading alone and come trade with me and my crown traders. Okay, let's talk about Microsoft. I called Microsoft to buy at $382 and told everybody that it was going to confirm when we got above $42 and we absolutely ripped after that and it came all the way up to around $500. And I told everybody who asked me is this trade over? I said, "No, we're going to consolidate around this $500 level and then we're ultimately going to run up to around 531 and that's where we're going to potentially hit a brick wall." So, Microsoft has been climbing back towards its record highs because investors are seeing evidence that its huge AI bet can ultimately make money. There are three numbers that explain the excitement. The first is 43%. That's how fast Azour and other cloud sales grew last quarter. It says demand still exceeds the computing power it has available. Second, 30 million. That's the number of paid Microsoft 365 co-pilot accounts, businesses buying its AI tools. And then third, 40.6 6 billion. That's Microsoft's operating profit in one quarter, up 18% from a year earlier. The reason why investors are excited again about Microsoft is one, it had been beaten down, and two, they see it as a potential toll booth for AI business. It can charge for the computers running AI. It can charge for the tools employees use. And with usagebased pricing, the more work that those AI tools do, the more Microsoft can earn. But there's a catch. Microsoft spent $41 billion on infrastructure last quarter and investors are betting that those investments will continue to give a high ROI. Now, if growth slows, the massive spending will quickly become the reason to take profit at these lofty price levels that I'm going to review with you guys in the charts. So, let's dive into the technicals. I'm going to explain to you what is significant about the 531 fib level and a handful of other things. And then at the end, I'm going to give you a brand new Microsoft price prediction. This is going to be important. Let's go check out that chart. Okay, we have an ascending line of resistance and I'm expecting that we're going to run up and we're going to tap it and hit it and this is going to be an area where there's going to likely be some high level of selling and that coincides perfectly with our 529. Now, we had a breakout move from the bottom of the range to the top of the range, but we're now forming a new candle structure pattern, which is a bearish ascending channel. Price does not often break above. It likely continues higher, comes to the bottom of the channel, and breaks down. I'm going to make a new prediction as to where we might possibly pull back to once we hit my predicted level of 529. Now, I want to make a comment that I dialed that number in. It used to say 531. I'm playing it slightly conservative and I'm taking profit at 529. Now, ultimately, I believe in the coming months there is a clear path to a brand new all-time high at around 572. However, I believe that when we hit this 530, it's going to act as a significant resistance and we will continue to consolidate and possibly come back to the bottom of this channel. So, I want to prepare you guys for that. That's why I call this my price predictions. Now, the RSI often tells us about the health of the move, and it's extremely healthy when the price is above the 60% level. Now, there's also an additional level in here at around 66, which is not a fundamental level for all stocks, but it's a level that Microsoft has struggled to get above when it consolidated beneath that level and broke down. Well, we finally come back into that same channel and once again, we're consolidating. So, if we come up and we hit this 529, we will be hitting this 66% level on the RSI and it is resistance. And as I've said to you guys many times on this channel, resistance tends to resist. And oftent times, you're looking to take profit and sell into significant resistance, especially after a long extended up move like we've had with Microsoft. And you want to be buying at key levels of support, which is what we did. It's one of the reasons why we took risk when it was down at $382. So now it's time for me to make my future prediction. Here's what I think is going to happen. I believe that early next week before Wednesday, we're going to run up and we're going to hit that 530 level on Microsoft as predicted well over a month ago. Now, this is a critical trendbased fib extension resistance level 1.618. We could go through it a little bit, but ultimately we would need two candles closed above it to give us the indication that we're climbing higher right away. And with the PCE next week, if that event turned out to be bullish, that's all this stock would need to continue to blast higher. But again, one of the key things I'm telling you is that my price prediction on Microsoft for a runup all the way to 531, we are getting ready to do that Monday or Tuesday of next week and then we're going into some potential resistance areas. So, this video is meant to be a high alert call and to prepare you to potentially hedge your Microsoft long-term positions. Now, if we do reject at that fib level of 1.618, I want you to understand that we are likely going to have a pullback that would bring us all the way to 460. That's a very normal pullback for a bullish stock. 460, the 382 fib level is what I would expect. But the move up to 531, if that's resistance, then a pullback. That could be as low as 460. And it's not going to be something that would happen overnight. That would take some time. That could be a pullback in the greater overall market all through the month of October. Now, I'm not predicting that, but I'm going to show you what the spy looks like and what I think we're running up to there, which is also an area of significant resistance where sellers will be camped out. Okay. Hey, if you're a fan of this show and you've been watching for a while, you know that ever since we got up to 775 and had this rejection red candle, I predicted that we were going to roll over and that we were likely going to have to come back and bounce off this 750, which we did. And we have since been rocketing higher. Now, we ended this week up against the middle of this channel once again, which was something that I had again predicted, but this is an area of resistance. So, it's a decision point. Now, the big area that we have yet to hit, which is an important fib level, is 783. And I think going into next week, it's possible right out of the gate that we go up and tap that. Now, if we do go up and tap that, people will be very excited, but it is an area of substantial fib resistance. And so, we need to be careful. This is an area where sellers will be camped out. Now, I want to take a minute and talk about the RSI. Now, the RSI tracks momentum. And you can see that we've got some dotted lines of resistance pushing momentum down in the past and ultimately that led to a violent pullback and you can see that we're doing the exact same thing here again. This is bearish divergence. That's when price is ascending while momentum is descending. And if we cannot break above this white dotted line and next week we pop up to this 783 level which I have been predicting for a long time and we hit this dotted line again right here. This would be an area where momentum could yet again fade similar to the touches that occurred right here. There was a number of touches before this ultimately rolled over and had a violent move down. Now, you can see that I've got another dotted line marked, and this is an area where we'd want to be buyers based on the RSI, but it also coincides with some pretty rough moments in the market in the past, these huge momentum dips where we went red and flushed. So, we got to watch this RSI level. We're currently in the camp of the bulls because we're currently above 60, but we're seeing a steady decline and sort of a cap on momentum every time we come up and touch this dotted line. And we're getting ready to do that next week. And so, will we do the same thing that we did in the last cycle, get pushed back below the 60% level, and get a violent flush before we go into the end of this year? Now, that's not meant to be prediction. It's something that we have to watch out for. When I told you that Microsoft run was not over and it was going to run up to 530 before it ended, that was a prediction. But we're going to be watching the overall market. We're going to be watching what happens next week with the Fed, with the Micron's earnings because it is a huge catalyst. It could be a catalyst to push things higher or lower. We want to be prepared. Let me know what you think of Microsoft. Will you be taking profit at 530 or do you think this is just the beginning of the move that the PCE uh is going to come in soft and the Fed's not going to have to give us more rate hikes and the market's going to go crazy bullish and continue to climb? What do you think's going to happen next week? Let me know in the comments section. I appreciate you guys watching this video and going into next week. Don't trade alone. Come use my tools, use my proven system, and trade alongside me and my crown traders. Peace and blessings, my friends. Take care.