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Navigating Market Volatility: The End of the Winning Streak · The SPY Trader

• 0:00
  Hey there , market friends !
• 0:02
  You are listening to Spy Trader .
• 0:04
  I am your host , Barnaby Bullish , and I am so glad you could join me for our afternoon checkin .
• 0:09
  It is currently 2:30 pm on Wednesday , June 3rd , 2026 , here on the Pacific Coast .
• 0:16
  We have had quite a ride lately , haven't we ?
• 0:18
  After that historic nineday winning streak where the S&P 500 was basically touching the stars above 7,600 , things have taken a bit of a breather today .
• 0:29
  Let us look at the numbers .
• 0:31
  The S&P 500 , or the SPY as we like to call it , fell 0.74% to close at approximately 7,553.68 .
• 0:41
  The techheavy Nasdaq100 , that is your QQQ , dropped 0.89% , while the Dow Jones Industrial Average , or DIA , witnessed the sharpest decline , falling 1.21% to 50,687.07 .
• 0:58
  Why the shift ?
• 1:00
  It is a mix of escalating geopolitical tensions in the Middle East following news of attacks by Iran against U.S.
• 1:06
  Gulf allies and a recalibration of the AI trade .
• 1:10
  While the technology sector is under pressure with Nvidia and Microsoft falling over 3% , Energy is standing tall .
• 1:18
  Crude oil prices jumped to 96.48 dollars per barrel , making the Energy Select Sector SPDR , or XLE , a resilient tactical hedge .
• 1:29
  Digging into the analysis , we are seeing some stagflationary shadows .
• 1:34
  The April CPI reached 3.8% , the highest since 2023 , largely due to this oil shock .
• 1:42
  While the ADP Employment Report showed 122,000 privatesector jobs added , the Fed's Beige Book notes that national employment growth is starting to flatten .
• 1:53
  Highprofile companies are also feeling the heat .
• 1:57
  Alphabet , ticker GOOGL , saw shares fall after increasing its AI infrastructure equity raise to 84.75 billion dollars , raising dilution concerns despite Gemini reaching 900 million users .
• 2:12
  Broadcom , or AVGO , reported record revenue of 22.18 billion dollars but narrowly missed estimates , sliding 6% in afterhours trading .
• 2:25
  However , Marvell Technology , or MRVL , is a standout , up over 50% in the last five days .
• 2:31
  So , what is the game plan ?
• 2:33
  First , I recommend tactical defensive hedging .
• 2:36
  Look at SPDR Gold Shares , that is GLD , and the Energy Select Sector SPDR , or XLE .
• 2:43
  With gold near 4,490 dollars per ounce and oil rising , these are essential hedges against Middle East instability .
• 2:51
  Second , consider rotating your tech exposure toward Agentic AI .
• 2:57
  Instruments like Advanced Micro Devices , or AMD , and Marvell Technology , or MRVL , are better positioned for the next leg of infrastructure spending than some pureplay manufacturers .
• 3:09
  Third , rebuild some income with highquality REITs .
• 3:13
  The Vanguard Real Estate ETF , or VNQ , and Digital Realty , ticker DLR , offer a compelling entry point as we look toward potential rate cuts later this year .
• 3:26
  DLR is especially great because it bridges real estate stability with AI data center growth .
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  Finally , diversify beyond the U.S.
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  market .
• 3:35
  The Vanguard FTSE Developed Markets ETF , ticker VEA , provides exposure to Japan and Europe where valuations are lower .
• 3:44
  The meltup has paused , so use this volatility to trim overcrowded positions and add to your defensive and incomegenerating plays .
• 3:53
  Stay smart out there !