Heaven’s Gates

Semiconductors were one group that had refused to
buckle in recent weeks despite the breakdown through March and April of many
of the big-cap former leaders like Cisco, Sun, Oracle and the opticals.

Even with the antitrust worries hanging over it,
Microsoft
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has managed to hold up well relative to the rest of
tech. Yes, the software giant has pulled back from its Jan/Feb highs, but it
clearly has refused to throw in the towel with the rest of tech. Perhaps
Microsoft will have to be the one to provide some new leadership out of
these recent doldrums.

 

Softie has its work cut out for it though, since
it appears to be hitting resistance at its 50-day moving average, and further
back, at its 200-day on Feb. 5 at 62.62. I will be watching to see if
Microsoft can push above its 50-day on increasing volume and then hold on to
that level. The next challenge, then, would be its 200-day.

Microsoft closed Monday up .96 to 57.15. Although
MSFT remains a little more than 50% below its all-time high, that’s a pretty
good performance compared to the pain in the greater Nasdaq.

Till tomorrow,

Eddie