×

Terranova: Money Managers to Drive Microsoft Even Higher

Microsoft landed in the spotlight recently as the software giant’s aggressive moves into the cloud space drove shares higher.

Considering Microsoft has largely been considered dead money by the Street for quite some time, how should you game the recent gains?

Trader Joe Terranova says he expects Microsoft to rally right through Thursday.

”For the quarter the S&P is down about 2% while Microsoft is up over 1%,” he explains. “It outperformed the S&P and portfolio managers are underinvested in this stock.”

In other words, according to Terranova’s thesis, end of quarter window dressing should drive Microsoft higher as money managers snap up shares before they close the books.

"Understanding what portfolio managers do, they'll think - I'd better show Microsoft because it has outperformed the S&P during an abysmal quarter," Terranova says.

Trader Stephen Weiss isn't quite so bullish. "I own Microsoft but I wouldn't add to my position here," he says. "Microsoft won't really move until CEO Steve Ballmer steps down and nobody really sees that happening soon."






______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our Web site send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On June 28, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss owns (TWM); Weiss owns (DE); Weiss owns (CMA); Weiss owns (KEY); Weiss owns (QCOM); Weiss owns (NAV); Weiss owns (EMC); Weiss owns (MSFT); Weiss owns (HK); Weiss owns (COP); Weiss owns (AKAM); Weiss owns (ETP); Weiss owns (NS); Weiss owns (VZ); Pete Najarian owns (AAPL); Pete Najarian owns (C); Pete Najarian owns (MSFT); Pete Najarian owns (MS); Pete Najarian owns (MOS); Steve Grasso owns (AKS); Steve Grasso owns (AMD); Steve Grasso owns (ASTM); Steve Grasso owns (BA); Steve Grasso owns (BAC); Steve Grasso owns (C); Steve Grasso owns (D); Steve Grasso owns (HOV); Steve Grasso owns (JPM); Steve Grasso owns (LIT); Steve Grasso owns (LPX); Steve Grasso owns (MHY); Steve Grasso owns (NDAQ); Steve Grasso owns (PFE); Steve Grasso owns (PRST); Terranova Owns (VRTS); Terranova Owns (IBM); Terranova Owns (FCX); Terranova Owns (CVI); Terranova Owns (F); Terranova Owns (AAPL); Terranova Owns (CAT); Terranova Owns (BX); Terranova Owns (HPQ); Terranova Owns (MA); Terranova Owns (PEP); Terranova Owns (MCD); Terranova Owns (JWN); Terranova Owns (TM); Terranova owns (MSFT); Terranova Owns (LULU); Terranova Owns (WFM); Terranova Owns (DAR); Terranova Owns (BJ); Terranova Owns (HAS); Terrnaova owns (DIS); Terranova Owns (XOM); Terranova Is Short (DELL)

For Dennis Gartman
Gartman is short the Euro
Gartman is long Gold

For Steve Grasso:
Stuart Frankel & Co and it’s partners own (AAPL)
Stuart Frankel & Co and it’s partners own (ABX)
Stuart Frankel & Co and it’s partners own (CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MU)
Stuart Frankel & Co and it’s partners own (MSFT)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (QQQQ)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)

For Mike Khouw
Cantor Fitzgerald is a market maker in (AKS)
Cantor Fitzgerald is a market maker in (AAPL)
Cantor Fitzgerald is a market maker in (BAC)
Cantor Fitzgerald is a market maker in (C)
Cantor Fitzgerald is a market maker in (FTO)
Cantor Fitzgerald is a market maker in (GM)
Cantor Fitzgerald is a market maker in (GS)
Cantor Fitzgerald is a market maker in (GOOG)
Cantor Fitzgerald is a market maker in (IBM)
Cantor Fitzgerald is a market maker in (JPM)
Cantor Fitzgerald is a market maker in (LNKD)
Cantor Fitzgerald is a market maker in (MRO)
Cantor Fitzgerald is a market maker in (MA)
Cantor Fitzgerald is a market maker in (MSFT)
Cantor Fitzgerald is a market maker in (MWW)
Cantor Fitzgerald is a market maker in (MS)
Cantor Fitzgerald is a market maker in (MMI)
Cantor Fitzgerald is a market maker in (NAV)
Cantor Fitzgerald is a market maker in (ORCL)
Cantor Fitzgerald is a market maker in (P)
Cantor Fitzgerald is a market maker in (PTEN)
Cantor Fitzgerald is a market maker in (POT)
Cantor Fitzgerald is a market maker in (XHB)
Cantor Fitzgerald is a market maker in (SYMC)
Cantor Fitzgerald is a market maker in (X)
Cantor Fitzgerald is a market maker in (PAY)
Cantor Fitzgerald is a market maker in (V)
Cantor Fitzgerald is a market maker in (WFC)

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LHO)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of Sun Pharmaceutical Industries Ltd.
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & URL PLC





CNBC.com and wires