Eyes On Microsoft

Hey 5-Star Trader,

Large-cap stocks can be categorized as any company whose market capitalizations are $10 billion or above. Earlier this week, I tweeted that Microsoft was sitting right on the daily 50 simple moving average (SMA). But why is this important?

Often a large-cap’s individual health can provide clues to the overall market sentiment. So, when they have huge moves or unexpected behavior, such as Microsoft touching the 50 SMA (pictured below), it is important to take note.

When Microsoft hit the daily 50 SMA it told me a few things. Historically speaking, when Microsoft behaves this way we often see it bounce and that is exactly what we saw the following day. Additionally, because it is such a large-cap stock with huge influence over the market, I figured if Microsoft could bounce, the overall market would follow in its place. It seems like that has come to fruition with the rally we got the very next day.

Historical data and large-cap behavior can certainly be used to your advantage if you know what the clues are trying to tell you. Stay sharp traders!

-Danielle =)

Up Next...

SPCX Breakout: High-Volume Thrust Above the Post-Earnings Gap High Signals 

August 7, 2026 Short-Squeeze Continuation SpaceX (SPCX) delivered a textbook bullish breakout today, closing at 133.11 after surging cleanly above the post-earnings gap high. This was no ordinary move—it was accompanied by continually increasing volume throughout the session and a strong close on elevated volume, exactly the kind of institutional footprint we look for in … Read more

Market Momentum Edition | Tech Breakouts Ignite

Good afternoon, traders. Price action in the Nasdaq is a bit quiet today after a strong move off of the 200 SMA on the daily chart. The technical setups I’ve been tracking are finally breaking out and recovering well. Yesterday’s 3% surge in the Nasdaq confirmed the directional shift post-Mag 7 earnings. Let’s discuss… Nasdaq: … Read more

Magnificent 7 Volatility & Recap

Good afternoon, Five Star Traders! Volatility has been the name of the game this week as the market digested the final wave of Mag 7 earnings. Wednesday’s reports kicked things off, and the follow-through into Thursday and Friday has been nothing short of explosive for a couple of the leaders. Let’s break it down. Mag … Read more

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now