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The VShaped Comeback: Markets Rally on Davos Relief · The SPY Trader

• 0:00
  Good morning , traders !
• 0:02
  It is exactly 5 a.m.
• 0:03
  here on the West Coast , and today is Thursday , January 22nd , 2026 .
• 0:09
  I am your host , Cheddar Charlie , and you are listening to Spy Trader .
• 0:13
  We are coming to you every few hours to keep your portfolio on track , so grab your coffee , settle in , and let’s look at why the markets are waking up with a huge smile on their faces today .
• 0:24
  We are witnessing a classic Vshaped recovery .
• 0:28
  After suffering the worst singleday decline in three months this past Tuesday , the market is roaring back .
• 0:35
  In premarket trading this morning , the S&P 500 , tracked by the SPY , is up about pointsixfour percent , sitting very close to its alltime high of 6,965 .
• 0:47
  The techheavy Nasdaq100 , or the QQQ , is leading the rebound with a gain of pointninefive percent as those earlier jitters settle down .
• 0:58
  Even the Dow Jones is seeing a pointfourzero percent lift following its massive 600point gain yesterday .
• 1:04
  Looking at the sectors , Energy is our superstar this week .
• 1:08
  The XLE sector fund rose over two percent yesterday , led by companies like EQT Corp and Texas Pacific Land .
• 1:16
  Meanwhile , technology and semiconductors are having a relief rally .
• 1:21
  Intel is the one to watch ; it surged nearly twelve percent yesterday and is reporting earnings after the bell today .
• 1:29
  On the flip side , defensive plays like Consumer Staples and Utilities are lagging as investors move back into growth assets .
• 1:38
  The big news driving this shift comes from the World Economic Forum .
• 1:42
  Market sentiment turned around fast after President Trump’s speech at Davos .
• 1:46
  He signaled a cooling of trade tensions by backing off scheduled February tariffs on NATO allies and ruled out military force regarding the acquisition of Greenland .
• 1:58
  This has removed a massive cloud of risk from the global stage .
• 2:02
  However , it is not all smooth sailing .
• 2:05
  We have a bit of a crisis at the Federal Reserve .
• 2:08
  Fed Chair Jerome Powell is currently under a DOJ investigation regarding office renovations , which he says is just a pretext for political pressure to cut interest rates .
• 2:19
  Despite this drama , markets expect the Fed to hold rates between threepointfive and threepointsevenfive percent at the meeting on January 28th .
• 2:29
  With inflation at twopointseven percent , a rate cut probably won't happen until June .
• 2:34
  In earnings news , Netflix is a headscratcher .
• 2:38
  The stock fell five percent even though they beat earnings expectations and hit 325 million subscribers .
• 2:46
  It seems investors are worried about their 2026 revenue guidance and the uncertainty of their acquisition of Warner Bros.
• 2:54
  Discovery .
• 2:55
  In contrast , Oracle and Microsoft are making waves with a massive fivehundredbilliondollar AI infrastructure project .
• 3:03
  We are also watching Procter and Gamble and GE Aerospace as they report this morning .
• 3:08
  So , what is the game plan for today ?
• 3:10
  First , for your core portfolio , keep your exposure to quality .
• 3:14
  I like the Vanguard S&P 500 ETF , ticker VOO , or the iShares IVV .
• 3:21
  The Buy America trend is strong right now , favoring these largecap domestic companies .
• 3:27
  Second , if you are worried about trade wars and tariffs , look at the iShares U.S.
• 3:32
  Tech Independence Focused ETF , ticker IETC .
• 3:36
  This fund targets American tech companies with minimal international supply chain risks , which is a great hedge .
• 3:42
  Third , let's talk about income .
• 3:44
  With the Fed on hold , the middle of the bond market looks attractive .
• 3:48
  Check out the iShares Core U.S.
• 3:50
  Aggregate Bond ETF , ticker AGG , or the Flexible Income Active ETF , ticker BINC .
• 3:58
  You can lock in yields near fourpointtwo percent without the volatility of longterm Treasuries .
• 4:03
  Finally , don't ignore gold .
• 4:06
  Even though things are cooling off globally , the Fed's independence crisis is good for precious metals .
• 4:11
  The SPDR Gold Shares , ticker GLD , remains a great longterm play as experts see gold potentially hitting fiftyfourhundred dollars by late next year .
• 4:22
  That is the play for this Thursday morning .
• 4:25
  The market is driven by animal spirits and a fast recovery from fear .
• 4:30
  While the Nasdaq offers the most recovery potential today , energy and tech independence funds provide the best protection against the wall of worry .
• 4:39
  I'm Cheddar Charlie , and this has been Spy Trader .
• 4:43
  Go get 'em , and let's make some green today !