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Bulls Bounce Back: Breaking the Losing Streak · The SPY Trader

• 0:00
  Hello everyone and welcome back to Spy Trader !
• 0:03
  It’s 2:30 pm on Friday , September 25th , 2026 , out here on the Pacific coast .
• 0:11
  I am your host , Barnaby Bull , and I am so glad you could join me for our afternoon market wrapup .
• 0:17
  It has been a bit of a roller coaster lately , hasn't it ?
• 0:20
  But as we head into the weekend , the market is giving us a reason to smile .
• 0:26
  We are finally breaking that pesky threeday losing streak , and it looks like the bulls are back in charge for now .
• 0:32
  The S&P 500 , which many of you track through the SPY or VOO ETFs , is up about pointfour percent today , sitting at 7,740 .
• 0:42
  We are actually on track for our first winning week in nearly a month , which is a breath of fresh air .
• 0:48
  Over in the techheavy Nasdaq , or the QQQ , we are also seeing a pointfour percent gain .
• 0:55
  But the real standout today is the Dow Jones Industrial Average , which is jumping pointnine percent , or about 438 points .
• 1:04
  It seems like the valueoriented sectors are finally getting some love .
• 1:08
  The big driver today is what we call a relief rally .
• 1:11
  We are seeing oil prices cool down a bit to around 99 dollars a barrel for Brent crude .
• 1:17
  This is happening because there are whispers of a potential U.S.Iran truce that could see the Strait of Hormuz reopen within the next week .
• 1:26
  That has taken some of the pressure off the energy risk premium that has been weighing on us .
• 1:31
  Speaking of sectors , our leaders today are Communication Services and Healthcare .
• 1:36
  Specifically , the XLV healthcare ETF is doing well because folks are looking for a defensive place to hide while inflation remains a bit sticky .
• 1:45
  On the flip side , Utilities and Materials are the laggards today , dropping over one percent .
• 1:52
  These bond proxy sectors are really feeling the heat from high Treasury yields .
• 1:57
  If you have been watching the bond market , you know the 10year Treasury yield is still hovering near 5.16 percent , which is a multidecade high .
• 2:06
  This follows the Federal Reserve's move earlier this month where Chair Kevin Warsh raised interest rates by 25 basis points .
• 2:14
  We are now in a target range of 3.75 to 4 percent as the Fed tries to wrestle inflation down from 3.4 percent .
• 2:23
  In company news , Costco is the talk of the town .
• 2:27
  They reported a clean beat for their fourth quarter yesterday , with earnings per share coming in at 6 dollars and 75 cents on over 95 billion dollars in revenue .
• 2:39
  The stock is up nearly 3 percent today to around 920 dollars .
• 2:44
  Everyone is crossing their fingers for a massive 20dollarpershare special dividend later this year .
• 2:51
  Nvidia is also trending higher after news broke that SpaceX plans to put hundreds of thousands of Nvidia AI chips into its Colossus 2 data center .
• 3:02
  It goes to show that the AI infrastructure supercycle is still going strong .
• 3:07
  However , Tesla is having a tougher day .
• 3:11
  Even though they received a new investmentgrade rating from Fitch , BNP Paribas cut their price target to 268 dollars because they are worried about Tesla's 25billiondollar spending plan for 2026 .
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  So , what should we do with our money ?
• 3:27
  Well , my strategy right now is all about defensive growth and income .
• 3:31
  With the Fed keeping rates higher for longer , we want quality companies with real cash flow .
• 3:37
  My first recommendation is Costco .
• 3:40
  With 13 billion dollars in cash , they are a defensive powerhouse .
• 3:45
  I would look to buy on this postearnings momentum with a target of 1,045 dollars .
• 3:50
  For a broader play , I really like the Schwab U.S.
• 3:53
  Dividend Equity ETF , or SCHD .
• 3:57
  It is a great way to get a safety net of sustainable cash flows if the tech rally starts to wobble .
• 4:03
  If you want to stay in tech , keep an eye on the VanEck Semiconductor ETF , or SMH .
• 4:10
  The Nvidia news is great , but use trailing stoplosses just in case .
• 4:14
  If the S&P 500 fails to hit a new high , you might want to rotate some gains into the Healthcare Select Sector SPDR , the XLV .
• 4:23
  Finally , for those looking at bonds , please be careful with the longterm stuff like TLT .
• 4:29
  With yields still rising , it is just too volatile .
• 4:32
  Instead , look at the Vanguard ShortTerm Corporate Bond ETF , or VCSH .
• 4:37
  It lets you capture those high yields with much less risk That is all for today's update .
• 4:43
  I hope you have a wonderful , relaxing weekend , and I will see you back here next time on Spy Trader !