New Trend? Dump AAPL to Buy MSFT?

For most of the 21st century Apple has been cool, while Microsoft couldn’t do more than drool. But things are changing (at least for investors). Microsoft has gone from ‘drool to cool’ on Wall Street. Will this surprising trend last?

Apple is hip and cool. Microsoft is boring and outdated. Apple (Nasdaq: AAPL) is in, Microsoft (Nasdaq: MSFT) is out.

That’s been the case most of the 21st century, but there’s been an odd shift lately.

Investors are picking MSFT over AAPL.

If Microsoft’s Cortana had a voice in this article, she’d point out that investors are dumping Siri to be with Cortana.

The charts below show that Cortana may be right.

The MSFT:AAPL ratio chart shows the ratio bounce off a 1-year support level. If the ratio can overcome near-term resistance it is likely to climb further.

This would suggest MSFT will continue to outperform AAPL, at least for a little while.

A look at history, in particular recent history shows that September is a particularly painful month for AAPL investors. Click here to view a detailed look at AAPL seasonality.

AAPL and MSFT are the two biggest components of the PowerShares QQQ ETF (Nasdaq: QQQ), which sits right above important support (QQQ support level shown here).

Simon Maierhofer is the publisher of the Profit Radar Report. The Profit Radar Report presents complex market analysis (S&P 500, Dow Jones, gold, silver, euro and bonds) in an easy format. Technical analysis, sentiment indicators, seasonal patterns and common sense are all wrapped up into two or more easy-to-read weekly updates. All Profit Radar Report recommendations resulted in a 59.51% net gain in 2013.

Follow Simon on Twitter @ iSPYETF or sign up for the FREE iSPYETF Newsletter to get actionable ETF trade ideas delivered for free.

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