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Nvidia’s Big Reveal and the Barbell Market Strategy · The SPY Trader

• 0:00
  Good morning , everyone !
• 0:02
  Welcome to another edition of Spy Trader .
• 0:05
  I am your host , Benny Bullish , and I am so glad you have joined me for our early morning market huddle .
• 0:11
  It is exactly 5 am here on the West Coast on Wednesday , February 25th , 2026 .
• 0:18
  If you have got your coffee in hand , let us dive into what is moving the money this morning .
• 0:24
  We have got a massive day ahead of us , especially with the main event coming after the closing bell , so let us get you prepared .
• 0:31
  First off , let us look at the scoreboard from yesterday .
• 0:35
  We saw a solid recovery across the board .
• 0:38
  The S&P 500 , which many of you track through instruments like SPY or VOO , is sitting at 6,890 , up nearly one percent in the last twentyfour hours .
• 0:50
  The techheavy Nasdaq100 , represented by the QQQ , is leading the pack at 22,863 , and the Dow Jones is right there with them at 49,174 .
• 1:04
  It is a riskon morning , folks .
• 1:06
  People are feeling optimistic , but as we always say , the devil is in the details .
• 1:12
  What is really interesting right now is what we call a barbell dynamic .
• 1:17
  On one side , you have that highoctane AI momentum , and on the other , the steady , real economy stability .
• 1:24
  We are seeing a big rotation under the surface .
• 1:27
  For a while , people were just throwing money at anything with AI in the name , but now they want to see the earnings .
• 1:34
  For example , look at the deal between Meta and AMD .
• 1:37
  Meta is putting billions into AMD infrastructure , which has given the Technology sector , or XLK , a nice bounce after a rough start to the year .
• 1:48
  But do not ignore the boring stuff .
• 1:50
  Energy and Industrials , the XLE and XLI , have actually been outperforming tech most of this month .
• 1:57
  Stocks like Caterpillar and ExxonMobil are acting as great hedges because inflation is still a bit sticky .
• 2:03
  Speaking of inflation , January numbers came in at 2.4 percent .
• 2:08
  That is good news , but the Federal Reserve is playing it cool , keeping rates between 3.5 and 3.75 percent .
• 2:18
  With Kevin Warsh nominated as the next Fed Chair , we are expecting a hawkish pause .
• 2:23
  This means fewer rate cuts and a focus on shrinking the Fed balance sheet to get that national debt under control .
• 2:30
  We also see the labor market cooling down .
• 2:33
  Private hiring is only averaging about 12,750 a week , which is the slowest in years !
• 2:40
  But surprisingly , you guys , the consumers , are still feeling great , with confidence hitting a new postrecession high of 91.2 .
• 2:49
  Now , we cannot talk about today without talking about Nvidia .
• 2:53
  They report earnings after the close today .
• 2:56
  It is the only one of the Magnificent 7 stocks up significantly this year , and because it makes up about 8 percent of the QQQ and SPY , its results will move the entire market .
• 3:07
  It is the big one , folks .
• 3:08
  So , what do we do with all this ?
• 3:11
  Here are my four big takeaways for your portfolio .
• 3:14
  First , try a Core Barbell Strategy .
• 3:18
  Use the Invesco S&P 500 Low Volatility ETF , ticker SPLV , for safety , and pair it with the Invesco QQQ Trust for that AI growth .
• 3:28
  It is like having an insurance policy and a growth engine at the same time .
• 3:33
  Second , lean into the Real Economy .
• 3:36
  AI needs physical stuff like data centers , power , and construction .
• 3:40
  Look at the Industrial Select Sector SPDR , or XLI , or specific companies like Caterpillar .
• 3:48
  They are the picks and shovels of this revolution , often without the high price tags of software firms .
• 3:54
  Third , do not forget to hedge with commodities and bonds .
• 3:58
  Gold is the king of safety in 2026 , up 18 percent already .
• 4:03
  You can use SPDR Gold Shares , or GLD , for that .
• 4:07
  If you want income , the iShares Core U.S.
• 4:09
  Aggregate Bond ETF , the AGG , is yielding over 4 percent right now , offering a safe harbor if the economy slows .
• 4:18
  Finally , look outside the U.S.
• 4:20
  Our stocks are getting expensive with pricetoearnings ratios around 28 .
• 4:25
  The Vanguard FTSE Developed Markets ETF , VEA , features European and Japanese stocks that are much cheaper and are actually outperforming us right now .
• 4:36
  This provides a buffer if Nvidia’s earnings cause a sell the news event here at home .
• 4:41
  That is the wrap for this morning .
• 4:43
  Keep an eye on those Nvidia numbers later today !
• 4:47
  I am Benny Bullish , and I will be back in a few hours to see how it all shakes out .
• 4:52
  Happy trading , and stay savvy !