Anything But Soft:
Some of the more mature, mega-cap technology plays never really went soft during the recent market meltdown. Below is the chart of one in Microsoft. Of course, I am a proponent of round number theory and MSFT is no exception, as the name found buyers at the 200 figure between last July-October. Monday the stock started the week off right advancing nearly 3%, equaling the advance from all of last week. Technically it is doing everything a bull would ask of it. It broke above a bullish ascending triangle and retested the move almost perfectly, and we know the majority of breakouts are often retested to see their validity. Monday it broke above a cup base pivot, and we know the best stocks will often give add-on entries, on the way UP, contrary to popular opinion. The large-cap tech play has gained more than 60% over the last one-year period, and that is to be respected as it is not easy to move a “supertanker” play that firmly. One will more often see those types of returns in the more agile smaller-cap peers. MSFT will most likely rise in a gradual manner, satisfying the needs of the old-time, saltier market participants.