I am a big fan of Bill Fleckenstein -- he of daily Market Rap fame. In today's piece, he passed a quick comment that it looks like Microsoft has at long last started to perform commensurate with the fundamentals underlying the company. As you might recall, I made a wrong turn with the company about a year and half ago, when the stock was in the lows 30s, buying a decent sized position of Jan 2012 $30 calls. Needless to say, I took a pretty loss when I finally sold it off in early 2011. Still, I own some of the stock outright and think it stands to perform well over time. But, the question is whether anything that has happened lately would give anyone reason to think that the stock is finally ready to move. So, despite the TA skeptic that I am, below is a 1-year daily chart.
In my estimation, it still looks to be range bound, and stopped right at the level that you would expect it to (
note: the lines you see were drawn a long time ago, so there was no tinkering with the chart today to tell the story I want to tell). Clearly, there are plenty of people who are looking at the chart and using it to guide their thought process. Which is not to say that it can't finally get going, simply that I would hold off on getting too excited yet.
