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QuarterEnd Momentum and the Holiday Barbell Strategy · The SPY Trader

• 0:00
  Good morning , everyone !
• 0:02
  I am your host , Barnaby Bull , and you are listening to Spy Trader .
• 0:06
  It is currently 6 am on Sunday , June 28th , 2026 , out here on the Pacific coast .
• 0:13
  I hope you have your coffee ready because we have a very interesting week ahead of us .
• 0:17
  We are currently staring down the final days of the second quarter , and with the Independence Day holiday coming up , things are about to get a bit quiet but also potentially a bit quirky in the markets .
• 0:29
  Let us dive into the big picture .
• 0:31
  We just got the latest PCE price index news last Friday , and the big takeaway is that inflation has finally stabilized right around that 2 percent target the Fed loves so much .
• 0:43
  This means the market is shifting its focus from inflation fears to growth sustainability .
• 0:48
  Because we are at the end of the quarter , Monday and Tuesday , June 29th and 30th , are going to be busy .
• 0:55
  You will see professional fund managers doing what we call window dressing They want their reports to look good , so they will likely be buying up the big winners from the last few months , which usually helps highflyers in the Invesco QQQ Trust .
• 1:10
  Looking at our specific sectors , the AI trade is still the talk of the town .
• 1:15
  We are moving into phase two now , where companies like Microsoft and NVIDIA are actually weaving AI into enterprise software and seeing higher than expected profit margins .
• 1:27
  However , do not be surprised if people take some profits out of the Technology Select Sector SPDR Fund , or XLK , after such a strong run .
• 1:37
  On the flip side , keep an eye on the banks .
• 1:40
  With the yield curve finally uninverting this year , big names like JPMorgan Chase are looking solid , making the Financial Select Sector SPDR Fund , XLF , an interesting value play for the week .
• 1:54
  If you are feeling a bit more cautious , the healthcare sector , tracked by XLV , has been a great defensive hedge lately thanks to some amazing breakthroughs in personalized mRNA treatments .
• 2:06
  Now , for my trading recommendations to get you through this holidayshortened week .
• 2:10
  First , for your core growth , stick with the winners .
• 2:14
  Holding positions in the Invesco QQQ Trust or the Vanguard S&P 500 ETF , known as VOO , makes sense for that endofquarter momentum .
• 2:25
  But remember , avoid new allin entries right at these peaks .
• 2:29
  Second , consider a defensive income play .
• 2:32
  With a long weekend coming up and the markets closed on Friday , July 3rd , it is a smart move to shift some of your speculative cash into the Health Care Select Sector SPDR Fund , XLV , or the iShares Core U.S.
• 2:46
  Aggregate Bond ETF , known as AGG .
• 2:50
  Bonds are actually offering some of the best real yields we have seen in a decade .
• 2:55
  If you are looking for a rebound play , keep an eye on the Vanguard Real Estate ETF , or VNQ .
• 3:02
  Real estate has been a laggard , but with mortgage rates falling this June , we are seeing signs that it is finally bottoming out .
• 3:09
  And for those looking abroad , the Vanguard FTSE Developed Markets ETF , VEA , is a great way to capture European markets as their central bank moves faster on rate cuts than our Fed .
• 3:20
  My final piece of advice for the week ?
• 3:23
  Use a barbell strategy .
• 3:25
  Keep your core investments in something steady like VOO or IVV , but balance that risk by adding to bonds like AGG or healthcare via XLV .
• 3:36
  This will help protect you against any potential July 4th hangover in the markets .
• 3:41
  That is all for this morning's update on Spy Trader .
• 3:44
  I am Barnaby Bull , and I will see you back here in a few hours .
• 3:48
  Happy trading !