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Market Turbulence: The Shift to Energy and Value · The SPY Trader

• 0:00
  Good morning , everyone !
• 0:02
  I am Sunny SideUp , and you are listening to another episode of Spy Trader .
• 0:06
  It is 6 am on Friday , March 27th , 2026 , here on the Pacific coast .
• 0:12
  Grab your coffee , because the markets have been a bit of a roller coaster lately .
• 0:16
  We are seeing some major shifts in where investors are putting their money , and today we are going to break it all down for you .
• 0:23
  Let's look at the numbers from yesterday’s close .
• 0:26
  It was a bit of a somber day on Wall Street .
• 0:29
  The S&P 500 , which we track via the SPY ticker , ended Thursday at 6,477.16 .
• 0:38
  That is a 1.7 percent drop , and unfortunately , it looks like we are headed for our fifth straight weekly loss , the worst streak we have seen in nearly four years .
• 0:48
  The techheavy Nasdaq100 , or QQQ , fell even further by 2.4 percent to 21,408.08 .
• 0:58
  Fear is definitely in the air , as the VIX fear gauge has spiked to 27.44 .
• 1:04
  The main driver here is the escalating conflict in the Middle East involving Iran , which has sent oil prices surging past 100 dollars a barrel .
• 1:14
  So , what does this mean for your portfolio ?
• 1:17
  We are witnessing a great rotation .
• 1:19
  While the highflying tech names are having a bit of a reality check , the real economy sectors are winning .
• 1:26
  The Energy Select Sector SPDR , or XLE , actually rose 1.6 percent yesterday while the rest of the market was falling .
• 1:36
  Exxon Mobil is a prime example of this trend , as it is up 26 percent so far this year .
• 1:42
  Meanwhile , even the mighty Nvidia fell 4.2 percent yesterday , and Microsoft has struggled significantly , down about 18 percent for the year .
• 1:53
  The Federal Reserve isn't helping much either ; in their latest meeting , they held interest rates steady between 3.5 and 3.75 percent and now only expect one rate cut for the entire year due to sticky inflation and the fog of conflict .
• 2:09
  Now , for some trading thoughts to help you navigate these choppy waters .
• 2:14
  First , consider hedging against this geopolitical risk by looking at commodities .
• 2:20
  The Energy Select Sector SPDR , known as XLE , or gold through the SPDR Gold Shares , or GLD , are acting as safe havens right now .
• 2:30
  As long as that conflict stays unresolved , energy and gold are likely to stay strong due to supply concerns and inflation .
• 2:38
  Second , it might be time to move into what we call quality value .
• 2:43
  Think of the defensive giants that provide essential goods .
• 2:46
  Walmart and Costco are great examples here .
• 2:50
  Walmart in particular is a resilient logistics play because 90 percent of Americans live within 10 miles of a store .
• 2:58
  You can also look at the Financial Select Sector SPDR , or XLF , for value plays like Wells Fargo which is trading at a low forward price to earnings ratio .
• 3:09
  Finally , if you have a longterm outlook , this might be a good time for some tactical bottomfishing in tech .
• 3:17
  Apple has been outperforming its peers by generating record cash flow , making it a bit of a flight to quality in the tech storm .
• 3:24
  Instead of trying to time the bottom perfectly , you might consider dollarcost averaging into a broad fund like the Vanguard S&P 500 ETF , or VOO .
• 3:35
  With the market at a 7 percent discount to fair value , steady investing in core ETFs is usually the way to go while the Fed remains in a pause .
• 3:46
  Stay safe out there , and I will see you in a few hours for the next update !