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Market Momentum Unwind: Navigating the Shift to Energy and Healthcare · The SPY Trader

• 0:00
  Hello everyone and welcome to Spy Trader , your goto source for navigating the twists and turns of the market .
• 0:06
  I am your host , Penny Pincher , and it is 2:30 pm on Monday , August 10th , 2026 , here in the Pacific time zone .
• 0:15
  We have got a fascinating afternoon to discuss .
• 0:19
  While the surface of the market looks like a calm lake , underneath the water , there is a massive and somewhat violent rotation happening as investors shift their money around .
• 0:29
  Looking at the major indices , we saw some slight cooling today .
• 0:34
  The S&P 500 , which we track via the SPY , fell onetenth of a percent to 7,753.11 , just a bit off the record high we hit last Friday .
• 0:47
  The Dow slipped by the same margin to 53,975.98 , while the Nasdaq , or the QQQ , took a slightly larger hit , losing zero point three percent to finish at 26,605.36 .
• 1:03
  Our friends over in the smallcap world had a tougher time , with the Russell 2000 , or IWM , declining zero point six percent .
• 1:12
  The big story today is what we call a momentum unwind .
• 1:16
  People are taking their profits from the tech giants and looking for safety .
• 1:21
  Technology is under real pressure right now .
• 1:23
  For instance , Intel shares slumped after they announced a fifteen billion dollar stock offering to fund their massive expansion into artificial intelligence and manufacturing .
• 1:34
  We also saw SpaceX drop thirteen point six percent after reporting sixteen billion dollars in quarterly capital expenditures .
• 1:43
  It seems the high cost of the AI race is starting to make investors a bit nervous .
• 1:49
  However , other sectors are picking up the slack .
• 1:52
  Energy is the star today .
• 1:54
  With uncertainty over the Strait of Hormuz , Brent crude surged five percent to eightysix dollars a barrel , which gave a nice boost to Exxon Mobil .
• 2:04
  Healthcare is also hitting record highs .
• 2:07
  Investors are flocking to giants like Eli Lilly , which rose three point two percent this week because it offers techlike profits but with a much more attractive price tag .
• 2:17
  Even financials stayed resilient thanks to strong earnings from Berkshire Hathaway .
• 2:22
  Looking ahead , this is officially Inflation Week .
• 2:25
  We are all waiting for Wednesday's July CPI print .
• 2:29
  Most experts expect headline inflation to cool to around three point three or three point four percent , but core inflation is looking a bit sticky .
• 2:38
  Our new Fed Chair , Kevin Warsh , has maintained interest rates between three point five and three point seven five percent and has a zerotolerance policy for inflation .
• 2:49
  This stance has pushed the tenyear Treasury yield up to four point seven zero percent .
• 2:54
  When you combine that with a surprising loss of twentythree thousand jobs in July , it is clear why the market is a bit on edge .
• 3:02
  So , how should we trade this ?
• 3:04
  My first recommendation is to rotate into defensive growth .
• 3:09
  Look at the Health Care Select Sector SPDR Fund , or XLV , or even Eli Lilly directly .
• 3:16
  Healthcare acts as a great hedge when the world gets volatile .
• 3:20
  Second , consider hedging against geopolitical risks with energy and commodities .
• 3:25
  The Energy Select Sector SPDR Fund , or XLE , is a solid tactical play with oil at eightysix dollars .
• 3:34
  You might also look at gold , specifically SPDR Gold Shares or GLD , as gold is currently trading at a safehaven price of four thousand three hundred ninety dollars .
• 3:45
  Third , for your core bond holdings , the iShares Core U.S.
• 3:49
  Aggregate Bond ETF , or AGG , is a smart move .
• 3:53
  It offers a stable five percent yield and is less volatile than those longterm bonds .
• 3:59
  Finally , think about diversifying internationally .
• 4:03
  The Vanguard FTSE Emerging Markets ETF , or VWO , gives you exposure to highgrowth areas like India and Brazil at a very low cost , which is a great way to spread your risk away from the U.S.
• 4:16
  tech trade .
• 4:17
  That is all for this edition of Spy Trader .
• 4:21
  Stay disciplined and I will see you next time .