Traders are funny creatures: Sometimes they’ll spend hours obsessing over inflation data but miss the tidal wave hitting the shore right in front of them.
And right now, that wave is Big Tech.
Microsoft just dropped a monster quarter. We’re talking $76.4 billion in revenue — nearly $3 billion more than expected. Earnings per share were $3.65 versus the $3.37 Wall Street was looking for.
And the cherry on top? The $4 trillion market cap milestone MSFT now shares with chip giant Nvidia.
Meta, the company the media wrote off just a year ago, hauled in over $47 billion in Q2 — up 22% from last year. Profit jumped 36% to $18.34 billion.
That’s not a bounce. That’s a moonshot.
And Google (fine, Alphabet), which kicked off this whole party last week, reported EPS of $2.31, surpassing analyst estimates of $2.12. Revenue increased 14% year over year to $96.43 billion, exceeding analyst estimates of $93.67 billion.
What do all three have in common?
AI. Cloud. Ads. Scale. And a business model that prints money like it’s a vending machine with no lock on the coin slot.
So what does this mean for traders?
Two things. Let’s explore them.
Opportunity
First, the opportunity. Tech is back to being the engine of the market.
If you’ve been trading long enough, you’ve seen this movie before.
Leadership matters. When one sector starts to drag the indexes higher, that’s where the money flows.
It creates trends, volume — and most of all, volatility we can trade.
And when the biggest companies in the market are blowing the doors off, it lifts the whole tide.
The Nasdaq has been ripping. The SPY can’t stay red for more than a few hours. And options premiums are juicy across the board.
But here’s the part most retail traders miss: These aren’t just headlines. These numbers move markets.
When Microsoft tacks on half a trillion in market cap in a matter of hours, it’s not just MSFT calls that benefit. It pushes tech ETFs. It hits semiconductors. It stirs up sympathy plays.
Nvidia, Amazon, Palantir, AMD — they all get swept into the trade.
If you’re only looking at single names without connecting the dots, you’re fighting the market with one hand tied behind your back.
Now, the Risk
Blowout earnings don’t always mean smooth sailing. These names are priced for perfection.
Microsoft could print another record next quarter and still fall if guidance isn’t as rosy. It’s the curse of being a leader — the bar keeps moving higher.
And the market’s gotten used to being surprised positively. That makes it fragile.
One stumble — one earnings miss, one weak forecast — and this whole thing could unwind fast.
So how do we trade this?
With intention.
Don’t just chase the chart that went parabolic yesterday.
Look for the setups that are still forming.
Watch the names that didn’t report yet. The ones lagging. The ones building a base while the crowd piles into overbought names.
Look for relative strength. Look for volume.
And always manage risk like the pros do — with stops, with size discipline, and with a clear exit plan before you ever hit “buy.”
These markets don’t hand out free money for long.
But right now, Big Tech just gave us a massive tell: They’re still leading, they’re still growing, and they’re still the backbone of this bull run.
Don’t sit on the sidelines waiting for a “perfect” entry. Trade what’s in front of you.
See the opportunity. Make the plan. Take the shot.
Stay street smart,
Jeff Zananiri
P.S. Join Danny Phee and today at 2 p.m. ET for APEX Live, where we’ll walk you through the setups we’re watching, how the market’s reacting, and where the real opportunities are right now.
This is the most critical session of the quarter.
📅 Today | ⏰ 2 p.m. | APEX Live
*Past performance does not indicate future results
