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SpaceX IPO Fever and the Great Sector Rotation · The SPY Trader

• 0:00
  Good morning , everyone !
• 0:02
  This is your host , Sunny Sideup , and you are listening to another episode of Spy Trader .
• 0:07
  It is currently 6 am on Sunday , June 7th , 2026 , here on the Pacific coast .
• 0:14
  I hope you have your coffee or tea ready because we have a lot to unpack before the opening bell tomorrow .
• 0:20
  The US stock market is heading into a truly pivotal week , and the vibes have shifted from the AI party of earlier this year to a more cautious mood .
• 0:30
  We are seeing high volatility and a major change in how investors are feeling about the future .
• 0:35
  The biggest story right now is the blowout jobs report from this past Friday .
• 0:40
  We added 172,000 new jobs in May , which is more than double the 85,000 experts were expecting .
• 0:48
  Now , normally , more jobs sound great , but in this world , it means the Federal Reserve , led by the new Chair Kevin Warsh , is likely to keep interest rates higher for much longer .
• 1:01
  In fact , investors are now pricing in a 98 percent chance that the Fed holds rates steady at the upcoming June 16th and 17th meeting , and some are even worried the next move might be a hike .
• 1:14
  We also have a massive event looming over the market : the SpaceX IPO .
• 1:19
  It is set to start trading this Friday , June 12th , and it is expected to be the largest in history .
• 1:26
  There is a real concern that big institutional investors are selling off their current stocks just to raise the cash needed to get a piece of SpaceX.
• 1:35
  This is putting some downward pressure on the S&P 500 , which we track through the SPY ETF , and the Nasdaq100 , which we see in the QQQ .
• 1:46
  Looking at the sectors , we are seeing a Great Rotation .
• 1:49
  The AIdriven tech rally is showing signs of exhaustion .
• 1:54
  The Technology Select Sector SPDR Fund , or XLK , is under a lot of pressure , especially after Broadcom issued some lackluster guidance last week that caused its stock to plunge 20 percent .
• 2:07
  People are taking their profits from momentum plays like Nvidia and Alphabet and moving into safer areas .
• 2:13
  On the flip side , higher yields are actually helping the Financial Select Sector SPDR Fund , or XLF , because banks can make more money on interest .
• 2:24
  Healthcare is also looking like a safe haven , with the Health Care Select Sector SPDR Fund , XLV , acting as a defensive shield while everything else gets rocky .
• 2:35
  This week , keep your eyes on Apple .
• 2:38
  Their Worldwide Developers Conference runs from June 8th through the 12th .
• 2:42
  If they do not wow us with groundbreaking AI integrations , we might see more selling in the QQQ .
• 2:50
  We also have earnings from Campbell Soup and Casey's General Stores on June 8th , which will tell us how inflation is hitting our grocery bills .
• 2:58
  Speaking of inflation , the big data drop is the Consumer Price Index on Wednesday , June 10th .
• 3:04
  Forecasts show headline inflation might climb to 4.2 percent because energy costs are surging , with Brent crude oil now over 100 dollars a barrel .
• 3:14
  Now , for the part you have been waiting for : our trading recommendations for the week .
• 3:20
  For the S&P 500 , or SPY , I am suggesting a Hold or Hedge strategy .
• 3:26
  Expect the market to move sideways as it balances that strong labor data against inflation fears .
• 3:33
  If Wednesday’s inflation number comes in higher than 4.2 percent , you might want to look at protective puts .
• 3:40
  For the techheavy QQQ , I recommend being Underweight .
• 3:45
  Between the technical damage in semiconductor stocks like Broadcom and the cash being pulled out for the SpaceX IPO , there is some downside risk here .
• 3:54
  If you are looking for a place to put money , consider the Healthcare SPDR , or XLV .
• 3:59
  It is a classic defensive move , and with the VIX volatility index jumping 28 percent last Friday , XLV is a lowerrisk alternative to tech .
• 4:09
  I am also giving a tactical buy rating to the Financial SPDR , or XLF .
• 4:16
  Rising yields are a tailwind for major banks like JPMorgan or Goldman Sachs .
• 4:21
  On the avoid list is the iShares 20 plus Year Treasury bond fund , ticker TLT .
• 4:27
  As yields go up , bond prices go down , and with a hawkish Fed , TLT is likely to keep falling .
• 4:33
  Finally , keep an eye on gold via the GLD ETF .
• 4:37
  It reacted negatively to the strong dollar and rising yields last week , and June is historically a weak month for gold , so consider trimming those positions .
• 4:48
  My overall strategy for you this week is a Barbell Strategy .
• 4:52
  Keep some of your highquality tech like Microsoft , but balance it out with defensive value in Healthcare and Financials .
• 4:59
  Keep some extra cash ready for that SpaceX debut on Friday , and be prepared for a bumpy ride on Wednesday and Thursday when the inflation data hits .
• 5:08
  Stay sharp , stay friendly , and I will see you back here in a few hours .
• 5:13
  Happy trading !