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The Great Rotation: Navigating Oil Shocks and Market Shifts · The SPY Trader

• 0:00
  Good morning , traders !
• 0:02
  It is your host , Penny Wiseman , here to help you navigate the charts and the news .
• 0:07
  It is 6 am on Monday , April 6th , 2026 , here on the Pacific Coast , and we have a lot to unpack in this morning’s session .
• 0:17
  While we are seeing a bit of green on the screen this morning — with the S&P 500 , or the SPY , up 0.37 percent and the Nasdaq100 , the QQQ , up 0.70 percent in premarket trading — we are coming off a very bumpy March that saw us retreat from those January alltime highs .
• 0:37
  The big story right now is what we call the Great Rotation .
• 0:41
  Investors are moving away from those highflying tech giants and toward energy and defensive stocks .
• 0:48
  This shift is being fueled by a massive geopolitical crisis in the Middle East .
• 0:53
  With the Strait of Hormuz effectively closed , crude oil has surged to over 110 dollars per barrel .
• 0:59
  As a result , energy funds like the Energy Select Sector SPDR , ticker XLE , and the United States Oil Fund , USO , are seeing massive amounts of money flowing in .
• 1:12
  On the tech side , it is a bit of a mixed bag .
• 1:16
  Microsoft is down about 23 percent yeartodate as the market worries about high spending on AI and interest rates staying higher for longer .
• 1:25
  However , Nvidia remains a powerhouse , reporting a record 215.9 billion dollars in revenue thanks to their new Vera Rubin AI platform .
• 1:37
  We are also keeping a close eye on Soleno Therapeutics , which saw shares jump 40 percent this morning on news that Neurocrine Biosciences might be buying them for 2.5 billion dollars .
• 1:50
  Looking at the bigger picture , the Federal Reserve is currently in waitandsee mode .
• 1:55
  They held interest rates steady at 3.50 to 3.75 percent in March , and it looks almost certain they will stay there through April .
• 2:04
  Inflation is creeping back up , with the core forecast revised to 2.7 percent because of the energy shock .
• 2:12
  Today is also a major deadline — it is the eve of President Trump’s Tuesday deadline for Iran to reopen the Strait of Hormuz .
• 2:20
  This tension is keeping the U.S.
• 2:22
  Dollar and Gold very high , with Gold trading near 4,690 dollars an ounce .
• 2:29
  So , what do we do with all this ?
• 2:32
  First , for your core portfolio , the current dip in the Vanguard S&P 500 ETF , ticker VOO , might actually be a good longterm entry point .
• 2:42
  If you are worried about the swings , consider a minimum volatility fund like USMV .
• 2:47
  Second , you have to hedge against these geopolitical risks .
• 2:50
  I recommend allocating some funds to SPDR Gold Shares , GLD , and the Energy Select Sector SPDR , XLE , to protect against those high oil prices .
• 3:02
  Third , for a growth play , Microsoft looks like a bargain right now .
• 3:06
  It is trading at a historically low valuation compared to its growth potential .
• 3:11
  You could also look at Micron , ticker MU , as they are making the memory chips for Nvidia’s next big platform .
• 3:17
  For those looking for safety and income , healthcare is the place to be .
• 3:21
  The Health Care Select Sector SPDR , XLV , is a great defensive move , and Tenet Healthcare , ticker THC , looks particularly strong ahead of its earnings .
• 3:32
  Finally , be careful with longterm bonds .
• 3:35
  With inflation on the rise , I would stick to shortduration bonds or a broad fund like the iShares Core U.S.
• 3:42
  Aggregate Bond ETF , AGG , for stability .
• 3:46
  Stay sharp out there , and remember to trade the plan , not the emotion .
• 3:51
  I will be back in a few hours with more updates for you on Spy Trader !