Latest / The SPY Trader / Tech Turmoil and the Gold Bubble Pop

Transcript

Tech Turmoil and the Gold Bubble Pop · The SPY Trader

• 0:00
  Good morning , market watchers !
• 0:02
  I am your host , Sunny Sideup , and you are tuning in to the latest episode of Spy Trader .
• 0:08
  It is 5 am on Monday , February 2nd , 2026 , here in the Pacific Time Zone .
• 0:15
  Grab your coffee and maybe a stress ball , because the markets are waking up on the wrong side of the bed this morning .
• 0:23
  While we recently celebrated a historic milestone with the S&P 500 , tracked by our favorite ticker SPY , crossing the 7,000 mark , the mood today has turned decidedly ' riskoff .
• 0:35
  ' Right now , U.S.
• 0:36
  equity futures are falling sharply , with S&P 500 futures down 1.2 percent and Dow futures trailing by 0.9 percent .
• 0:46
  This follows a global rout across Asian and European markets , and it looks like we are in for a period of high volatility .
• 0:54
  The big story today is what analysts are calling a violent reversal in several major trades .
• 1:00
  We are seeing intense scrutiny in the technology sector over what many call AI exhaustion .
• 1:06
  While tech earnings grew by about 22 percent last year , investors are now punishing companies that cannot show an immediate return on their massive AI spending .
• 1:18
  We saw this clearly with Microsoft , which saw its shares drop 10 percent as cloud growth for Azure slowed to 38 percent despite a record 37.5 billion dollars in AI capital expenditures .
• 1:32
  On the flip side , Meta Platforms is a standout performer .
• 1:36
  Their shares jumped 10.4 percent because they are successfully turning AI into advertising revenue .
• 1:44
  Meanwhile , Tesla fell 3.2 percent after reporting its firstever annual revenue decline , largely due to fierce competition from China’s BYD .
• 1:53
  Apple remains flat as rising memory costs and a lack of clear Physical AI monetization have capped its gains .
• 2:01
  Over in the healthcare sector , things are looking painful for insurers .
• 2:05
  UnitedHealth Group , Humana , and CVS Health have seen their stock prices plummet between 14 and 21 percent .
• 2:14
  This cratering happened because the 2027 Medicare payment rates are only increasing by 0.09 percent , which is far below the costs of inflation .
• 2:24
  We also have to talk about the ' Warsh Shock .
• 2:27
  ' Kevin Warsh has been nominated to succeed Jerome Powell as Federal Reserve Chair this May .
• 2:33
  Markets are reacting to fears that the Fed may lose some independence , and because Warsh is seen as a ' sound money ' advocate , gold is seeing a historic crash .
• 2:44
  Gold , tracked by GLD , fell nearly 6 percent today and over 11 percent last Friday , dropping toward the 4,400 dollar range after peaking above 5,600 .
• 2:56
  With the FOMC holding rates steady at 3.5 to 3.75 percent and tariffs pushing the effective rate on imports to 11.7 percent , the Fed has a very complicated path ahead .
• 3:09
  So , what is the game plan for your portfolio ?
• 3:13
  First , let's be selective with technology .
• 3:16
  I suggest reducing broad exposure to the QQQ and moving toward companies with proven softwareasaservice AI monetization .
• 3:25
  Meta Platforms , or META , is a great ' buy on the dips' candidate because of its ad efficiency , but I would be careful and stay underweight on Microsoft for a bit until cloud growth reaccelerates .
• 3:37
  In healthcare , I would avoid the broad XLV fund for the short term .
• 3:43
  Instead , look at medical device or pharmaceutical firms like Eli Lilly , ticker LLY .
• 3:49
  They remain a strong play due to sustained demand for obesity drugs and they have less direct exposure to the insurer rate rout .
• 3:57
  Regarding commodities , the gold bubble seems to be popping .
• 4:01
  The nomination of Warsh suggests a potential return to a stronger dollar , so it is likely time to sell or avoid GLD .
• 4:11
  You might pivot to the Invesco DB US Dollar Index Bullish Fund , ticker UUP , to capitalize on the reversal of the dollarselling trade .
• 4:20
  Finally , keep some dry powder ready .
• 4:23
  Technical indicators suggest the S&P 500 is due for a 10 percent healthy correction .
• 4:30
  Consider increasing your cash or moving into shortterm bonds for stability .
• 4:36
  Use the Vanguard Total Bond Market ETF , ticker BND , or the iShares 13 Year Treasury Bond ETF , ticker SHY , to park your cash while waiting for a better entry point in VTI or VOO once the market settles .
• 4:52
  Stay sharp , stay friendly , and I will see you at the next update .
• 4:56
  This is Sunny Sideup , signing off !