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Market Breather: Energy Hedges and the Reddit Surge · The SPY Trader

• 0:00
  Hello everyone and welcome back to the Spy Trader podcast , your goto source for navigating the twists and turns of the market .
• 0:08
  I am your host , Sunny Money , and I am so glad you are tuning in with us this afternoon .
• 0:14
  It is currently 2:30 pm on Friday , August 14th , 2026 , here in the Pacific time zone .
• 0:22
  We are heading into the weekend after a bit of a bumpy ride today .
• 0:26
  Yesterday we were celebrating fresh record highs , but today the market is taking a bit of a breather with a moderate pullback .
• 0:34
  Even with today's dip , it is important to remember the big picture — the S&P 500 is still up about 13.7% yeartodate in what has been a very strong 2026 so far .
• 0:49
  Right now , the S&P 500 , tracked by the SPY ETF , is trading around 7,785 , which is down about 0.2% from the alltime high of 7,798 we hit just yesterday .
• 1:04
  The Nasdaq , or the QQQ , is feeling a bit more weight , down 0.3% , largely due to a 6% slide in Broadcom and a general cooling in the semiconductor space .
• 1:18
  Meanwhile , the Dow Jones Industrial Average is down 0.2% as some weak retail data hits our consumerfacing blue chips .
• 1:26
  So , what is driving this mood shift ?
• 1:29
  It looks like we are seeing a ' stagflationlite ' signal .
• 1:32
  We just got a Retail Sales report for July that came in weaker than expected , suggesting that shoppers might finally be pulling back as those high interest rates start to crack consumer confidence .
• 1:44
  At the same time , inflation is still a mixed bag .
• 1:48
  The July CPI data was relatively cool at 3.4% yearoveryear , which gives the Federal Reserve a little bit of breathing room .
• 1:57
  Most traders are betting there is an 80% chance the Fed will hold rates steady in September , but keep an eye on those three hawkish dissenters from the last meeting .
• 2:07
  If inflation doesn't move toward that 2% target soon , another rate hike could still be on the table .
• 2:13
  Adding to the stress is the geopolitical situation in the Middle East .
• 2:19
  The Iran conflict is causing disruptions in the Persian Gulf , which has pushed Brent crude oil up toward 89 a barrel .
• 2:26
  This acts like a hidden tax on everyone and keeps headline inflation higher than we would like .
• 2:32
  Looking at the sectors , Energy is the clear star today .
• 2:36
  The Energy Select Sector SPDR , known as XLE , is up 1.68% .
• 2:43
  Big names like ExxonMobil and Chevron are acting as natural hedges against the geopolitical risks we are seeing .
• 2:50
  On the flip side , Technology is under pressure , down 0.24% .
• 2:56
  It seems the ' AI trade ' is getting a bit crowded .
• 3:00
  For example , Applied Materials reported great earnings yesterday , beating on both earnings per share and revenue , but the stock is muted today as investors decide to take some profits following the big 2026 rally .
• 3:15
  In the Healthcare space , the XLV is down nearly 1% , but there are bright spots like Healthcare Triangle , which reported a massive 322% jump in gross profit thanks to their AI integration .
• 3:29
  We also have some exciting company news .
• 3:32
  Reddit is the talk of the town !
• 3:34
  Shares of RDDT popped between 12 and 14% after the announcement that it will join the S&P 500 index this coming Tuesday , August 18th .
• 3:45
  This move will force massive buying from passive ETFs like VOO and IVV .
• 3:52
  We are also keeping a very close eye on Nvidia as we wait for their earnings later this month .
• 3:58
  Since semiconductors now make up nearly 20% of the S&P 500 , Nvidia's results will likely set the market direction for the rest of the quarter .
• 4:09
  While we wait , tech giants Apple and Microsoft remain the bedrock of this bull market , with Apple's services division now hitting 30 billion a quarter and Microsoft showing strong AIcloud integration .
• 4:22
  Now , let's talk about what you can do with your portfolio based on today's action .
• 4:27
  First , considering the Middle East conflict and rising oil prices , it might be wise to hedge your risk .
• 4:35
  You can look at the Energy Select Sector SPDR Fund , or XLE , to get exposure to those highcashflow oil majors .
• 4:43
  Another option for safety is SPDR Gold Shares , or GLD , which is serving as a hedge against both conflict and currency volatility .
• 4:52
  Second , since the S&P 500 is so topheavy with tech and chips right now , consider diversifying .
• 5:00
  You might look at Industrials like Caterpillar or healthcare innovators like GE Healthcare .
• 5:06
  These offer a way to play infrastructure and innovation without the extreme valuations found in the chip sector .
• 5:12
  You could also shift some focus from the QQQ to the Vanguard Total Stock Market ETF , or VTI , to get more exposure to midcap companies .
• 5:22
  Finally , keep an eye on that Reddit inclusion .
• 5:25
  The ' Index Effect ' can provide shortterm momentum for RDDT , but be careful of a ' sell the news' event once the inclusion is finalized on Tuesday .
• 5:36
  If you are looking for safety and income during this pullback , we are seeing a lot of money flowing into longterm bonds through the TLT ETF .
• 5:45
  That is all for today's update .
• 5:48
  Stay sharp , stay diversified , and have a wonderful weekend !