The Microsoft Clippers Take the Floor

Much like our analysis of KO earlier this week, MSFT is another stodgy Dow name which took its sweet old time getting back to prior all-time highs set more than fifteen years ago.

Now that both KO and MSFT have circled back to their prior highs, with Microsoft actually "clipping" it with momentary fresh ones, long-term overhead supply is likely to kick in with both issues.

Specifically, those longs who bought and held MSFT around 2000 fully expecting another double or triple, within short order, are just now being made whole. 

While there are many skeptics of the concept of overhead supply, and specially long-term overhead supply it is worth noting that nothing in speculation is ever guaranteed. 

So the issue much more about odds, probabilities, and edges. Here, the monthly chart for "Mister Softee," below, indicates the edge goes to idea that MSFT now comes in or at least goes sideway for the next few months as those monstrous prior highs are negotiated. 

Also note that MSFT was arguably the superstar of the 1990s, making those prior highs even more memorable for long-term participants.

The recent clipping of those highs, only to now fall back under $53, may simply add to their mystique as not being so easily surpassed--At least not on the first few tries.