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Energy Gains and Tech Pain: Strategy for a Shifting Market · The SPY Trader

• 0:00
  Good morning , traders !
• 0:01
  Welcome to another edition of Spy Trader .
• 0:04
  I am your host , Sunny Shares , and it is 6 am on Thursday , March 26th , 2026 , here on the Pacific Coast .
• 0:13
  We are checking in every few hours to make sure you have the latest scoop on this fastmoving market .
• 0:19
  Now , grab your coffee and let's get into it .
• 0:22
  The markets are waking up on the wrong side of the bed today .
• 0:26
  After a nice little relief rally yesterday , things have soured as diplomatic progress between the U.S.
• 0:32
  and Iran appears to have stalled .
• 0:34
  The S&P 500 , which we track via the SPY , is down about pointsixthree percent , trading near 6,591 .
• 0:43
  The Nasdaq , or the QQQ , is feeling more pain , down pointsevensix percent , while the Dow Jones is down pointfiveone percent .
• 0:53
  Investors are definitely feeling the jitters , with the VIX volatility index climbing to over 25 .
• 1:00
  The big news is the geopolitical standoff .
• 1:03
  Tehran rejected a U.S.
• 1:04
  peace proposal this morning , which sent oil prices right back up .
• 1:08
  WTI Crude is heading toward 93 dollars a barrel , and Brent is testing that 100dollar mark .
• 1:16
  This is weighing heavily on consumer sentiment , which just hit a multimonth low .
• 1:21
  We also have a hawkish Federal Reserve to deal with .
• 1:25
  Chair Jerome Powell is sticking to a higherforlonger stance on interest rates because inflation is staying sticky at 2.7 percent .
• 1:34
  While today's jobless claims of 210,000 were right in line with expectations , we are starting to see some cracks in the labor market .
• 1:43
  Looking at the sectors , Energy is the standout winner this year , up about 21 percent .
• 1:50
  If you want to hedge against these high gas prices , the Energy Select Sector SPDR Fund , or XLE , is the place to look , specifically giants like ExxonMobil and Chevron .
• 2:02
  On the flip side , Real Estate and Utilities are lagging because those 10year Treasury yields are sitting high at 4.37 percent .
• 2:11
  In tech , it is a tale of two cities .
• 2:15
  Nvidia and AMD are pulling back today , but Arm Holdings is a superstar , surging 16 percent recently on news of their AGI CPU roadmap .
• 2:26
  We also saw Super Micro Computer jump over 8 percent yesterday as the AI infrastructure boom continues .
• 2:33
  In other corporate news , Lovesac reported a 15 percent jump premarket thanks to a 40 million dollar stock buyback .
• 2:42
  However , Meta and Google are facing some regulatory heat after a Los Angeles jury found them negligent in a safety case .
• 2:49
  And keep your eyes peeled for SpaceX — rumors are flying that an IPO filing could be just days away !
• 2:56
  For today’s strategy , I recommend a barbell approach .
• 2:59
  First , play it safe with the Health Care Select Sector SPDR Fund , known as XLV .
• 3:05
  With consumer sentiment low , defensive stocks like UnitedHealth Group and Johnson and Johnson offer a port in the storm .
• 3:14
  Second , hedge your bets with the XLE energy fund .
• 3:17
  As long as the conflict in the Middle East continues , energy producers like ExxonMobil will be printing cash .
• 3:24
  For your growth exposure , I still like the QQQ or ARM , but maybe wait for this morning’s dip to find a floor before you jump in .
• 3:32
  Finally , for your fixed income , stick to the shortterm stuff like the iShares 13 Year Treasury Bond ETF , or SHY .
• 3:41
  Avoid the longduration bonds like TLT for now , as rising yields will just eat your lunch .
• 3:48
  My final piece of advice ?
• 3:49
  Keep about 5 to 10 percent of your portfolio in cash .
• 3:53
  If the S&P 500 drops toward the 6,500 support level , you will want that dry powder ready to buy broad market ETFs like VOO at a discount .
• 4:03
  That is all for this morning’s update .
• 4:06
  Stay sharp , stay friendly , and I will see you in a few hours right here on Spy Trader !