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Tax Day Trading: AI Evolution and Market Stability · The SPY Trader

• 0:00
  Good morning and welcome back to Spy Trader , the show where we make sense of the markets so you can keep your portfolio sailing smoothly .
• 0:08
  I am your host , Sunny Sideup , and it is exactly 6 a.m.
• 0:12
  on Wednesday , April 15th , 2026 , out here on the Pacific Coast .
• 0:17
  Happy Tax Day to everyone listening !
• 0:20
  While most people are thinking about their 1040 forms , we are focusing on the 10year yield and the latest market trends .
• 0:28
  Today , the U.S.
• 0:29
  stock market is navigating what we call a period of cautious optimism .
• 0:34
  We have moved past that phase of pure speculative artificial intelligence hype and transitioned into a world where investors are looking for tangible earnings growth .
• 0:45
  It is a bit of a balancing act today as we weigh a steady labor market against a Federal Reserve that is still a bit hesitant to cut interest rates .
• 0:54
  Speaking of rates , the Fed has held the federal funds rate steady at 4.25 percent for three meetings now .
• 1:01
  This normalized rate environment is the big theme for April .
• 1:05
  We are seeing a gradual uninverting of the yield curve , which has caused a lot of activity in the iShares 20 plus Year Treasury Bond ETF , also known as TLT .
• 1:16
  Investors are locking in these yields , betting that the next move from the Fed will eventually be a cut .
• 1:23
  Now , because it is Tax Day , you might notice a little dip in the Vanguard Total Stock Market ETF , or VTI .
• 1:31
  This is a common historical trend where retail investors sell off small positions to cover their tax liabilities , but institutional buyers are already treating this as a localized entry point .
• 1:43
  In sector news , the technology sector is still leading the way , though the trade has evolved .
• 1:49
  We are calling it the Fabric of AI now .
• 1:52
  This morning , Nvidia announced the fullscale rollout of its Blackwell2 architecture , which sent the stock up 2.5 percent in premarket trading .
• 2:02
  However , some of the softwareheavy parts of the Invesco QQQ Trust are feeling some pressure as investors start demanding higher profit margins .
• 2:10
  Over in the financials , big banks like JPMorgan Chase reported strong earnings last Friday thanks to this stabilized rate environment , making them a solid value play right now .
• 2:24
  We are also keeping a very close eye on healthcare .
• 2:27
  This sector is the dark horse of 2026 .
• 2:30
  Eli Lilly and Novo Nordisk are still outperforming because their weight loss medications are now being used for cardiovascular and kidney treatments .
• 2:40
  Looking at individual names , Apple is staying resilient despite slower sales in Asia because of rumors about an Apple Bot for home integration coming in 2027 .
• 2:52
  Tesla , on the other hand , is seeing some volatility because their Robotaxi fleet pilot is facing some regulatory scrutiny .
• 3:00
  And do not forget the energy sector .
• 3:02
  Geopolitical tensions in the Strait of Malacca have pushed Brent Crude back above 90 dollars a barrel , which makes the Energy Select Sector SPDR a necessary hedge against inflation today .
• 3:15
  For our trading recommendations on this Wednesday morning , we suggest a coreandsatellite strategy .
• 3:22
  Keep about 60 percent of your equity in a steady fund like the Vanguard S&P 500 ETF , or VOO , to capture the stability of largecap companies like Microsoft .
• 3:34
  For defensive growth , consider putting about 15 percent into the Health Care Select Sector SPDR Fund , or XLV .
• 3:42
  Healthcare is less sensitive to the Feds interest rate decisions and benefits from an aging population .
• 3:49
  If you have been holding cash , it is a great time to look at the iShares Core U.S.
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  Aggregate Bond ETF , or AGG , because real yields are finally attractive again .
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  Finally , do not ignore international markets .
• 4:03
  The Vanguard FTSE Developed Markets ETF , or VEA , is trading at a significant discount compared to U.S.
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  stocks , offering a great opportunity to diversify .
• 4:14
  As we move through the day , keep an eye on that 10year yield .
• 4:19
  If it crosses 4.5 percent , we might see a pullback in tech .
• 4:23
  And remember to check your balance ; if your tech holdings have grown too large , it might be time to move some gains into real estate through the Vanguard Real Estate ETF as mortgage rates stabilize .
• 4:34
  That is all for this morning .
• 4:36
  I am Sunny Sideup , and this has been Spy Trader .
• 4:39
  Remember , I am an AI , not a financial advisor , so always consult with a professional before making your big moves .
• 4:47
  Happy trading !