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Technology Stocks : How high will Microsoft fly?
MSFT 458.34+0.3%9:49 AM EST

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To: alydar who wrote (71094)7/12/2002 12:41:10 PM
From: David Howe  Read Replies (1) of 74651
 
Not sure it goes against my "theory", I've simply been pointing out that MSFT has been relatively strong over the past 5 weeks and relatively strong compared to the Nasdaq for the past 2 years.

It's bound to underperform at times as well, as it is today. The reason for today's lack of strength is the comments from Rick S. that said MSFT's quarter will be in-line, while others have previously been saying it would beat expectations.

Two thoughts I have lately.

1. If the economy stays on track and the bear market doesn't get much worse, I think MSFT could be a nice performer going forward. A safe and steady investment.

or

2. If the massive breakdown in the market that's predicted by the head and shoulders pattern in the S&P actually takes place, the market will probably need to take down some of the largest index weighted stocks. MSFT is one of them and it's quite possible that the final downward plunge to the ultimate bear market lows will take place only when the few remaining big caps finally collapse. MSFT will not be a nice place to have your money if that is our destiny.

FWIW,
Dave
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