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S&P 7,000: Navigating the Tech Gauntlet · The SPY Trader

• 0:00
  Good morning traders and early birds !
• 0:02
  It is 5 am on Sunday , February 1st , 2026 , here on the Pacific Coast .
• 0:09
  I am your host , Sunny Stockwell , and you are listening to Spy Trader .
• 0:13
  Grab your favorite mug of cocoa or coffee and settle in , because we have a massive week ahead of us on Wall Street .
• 0:20
  We just witnessed the S&P 500 hit a historic milestone on January 28th by crossing the 7,000 mark .
• 0:29
  That is a huge number , but now the market is in what I like to call a showme phase .
• 0:34
  It is one thing to reach the mountain top ; it is another thing to stay there .
• 0:39
  This week , we are looking at the Big Tech Gauntlet and some critical jobs data that will tell us if these high valuations are actually justified .
• 0:48
  Let us look at the big picture first .
• 0:50
  The Federal Reserve just held interest rates steady in the 3.50 to 3.75 percent range .
• 0:58
  This marks the end of that aggressive ratecutting cycle we saw late last year .
• 1:02
  We are now in a higher for longer neutral stance .
• 1:05
  This is usually great for cashrich companies like the ones in the S&P 500 , but it can be a bit of a squeeze for smaller companies with a lot of debt .
• 1:15
  We also have a leadership shift at the Fed to talk about .
• 1:18
  Kevin Warsh has been nominated to succeed Jerome Powell as Chair , and the markets are feeling a bit twitchy about it .
• 1:26
  Warsh is known for being more disciplined on the dollar , which adds a layer of volatility to our morning .
• 1:32
  And of course , circle Friday , February 6th , on your calendars .
• 1:38
  That is when the January employment report drops .
• 1:41
  We are looking for a modest gain of about 70,000 jobs with unemployment holding steady at 4.4 percent .
• 1:49
  If we get a Goldilocks number — not too hot , not too cold — the Vanguard S&P 500 ETF , also known as VOO , should be very happy .
• 1:59
  Now , looking at the sectors , Technology is facing its biggest test of the year .
• 2:04
  After some consolidation , we are heading straight into the earnings fire .
• 2:08
  Alphabet reports this Wednesday , and everyone is staring at Google Cloud growth and how they are making money from AI search .
• 2:17
  Amazon follows on Thursday , where the focus will be on AWS margins and how AI is helping them move packages faster .
• 2:24
  We also have the semiconductor bellwethers , AMD and Qualcomm , reporting Tuesday and Wednesday .
• 2:31
  In the healthcare space , it is a giant week for the XLV ETF .
• 2:36
  Eli Lilly , Merck , and Pfizer are all reporting .
• 2:39
  Keep a close eye on Eli Lilly ; any news on their obesity drug pipeline can move that entire healthcare sector .
• 2:47
  And for those watching the banks in the XLF ETF , keep in mind there is some political talk about a 10 percent cap on credit card interest rates which could be a headwind .
• 2:57
  Let’s talk about some specific events to watch for the next few days .
• 3:01
  Tomorrow , Monday , February 2nd , is going to be high energy .
• 3:06
  Palantir and Disney are both reporting .
• 3:09
  Palantir has an expected move of nearly 10 percent , so that is a real highbeta play for the AI enthusiasts .
• 3:17
  Meanwhile , Disney fans want to see if Disney Plus is keeping up its profitability to balance out the traditional media side of the house .
• 3:25
  So , what is the game plan for this week ?
• 3:28
  First , for your core portfolio , my recommendation is to stay with the broad equity market .
• 3:35
  As long as the S&P 500 stays above its 10month moving average , the trend is our friend .
• 3:43
  You can maintain your exposure through the Vanguard S&P 500 ETF , ticker VOO , or the SPDR S&P 500 ETF Trust , known as SPY .
• 3:54
  This keeps you diversified across 500 companies so a single tech miss won't ruin your week .
• 4:00
  If you are looking for growth , think about accumulating tech on the dips .
• 4:04
  Sentiment is a bit low right now , which actually sets us up for a potential short squeeze if Alphabet or Amazon surprise us .
• 4:13
  You can use the Technology Select Sector SPDR Fund , or XLK , for that concentrated tech exposure .
• 4:20
  For those who want something a bit more defensive , look at the bond market .
• 4:24
  With the Fed at that neutral 3.5 percent range , the bond market is offering some attractive yields .
• 4:31
  The iShares Core U.S.
• 4:32
  Aggregate Bond ETF , ticker AGG , is a great place for stability .
• 4:38
  It acts as a nice hedge if Friday’s jobs report comes in weaker than expected .
• 4:43
  Finally , for my aggressive traders out there , Palantir is your battleground stock .
• 4:49
  It is a highbeta play on enterprise AI .
• 4:52
  If you believe their AI platform adoption is accelerating , a small position ahead of Monday’s results might be for you , though you can always use the QQQ to play the general tech trend with a bit less individual risk .
• 5:06
  It is going to be a busy one , folks !
• 5:08
  Just remember to keep your eyes on the data and your feet on the ground .
• 5:13
  I will be back in a few hours with more updates .
• 5:16
  This is Sunny Stockwell for Spy Trader , wishing you a profitable and peaceful Sunday .