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Market Highs and the Value Rotation · The SPY Trader

• 0:00
  Good morning and welcome back to Spy Trader .
• 0:03
  I am your host , Penny Pincher , and it is 6 am on Tuesday , April 28th , 2026 , here on the Pacific coast .
• 0:11
  We are coming to you every few hours to keep your portfolio on track in this highstakes market .
• 0:16
  We are currently seeing a bit of a tugofwar on Wall Street .
• 0:19
  Just yesterday , the S&P 500 , or SPY , hit an incredible alltime high of 7,173.91 .
• 0:29
  But this morning , we are feeling a bit of bull market fatigue .
• 0:33
  While the major indices were celebrating on Monday , futures are trading a little lower today as investors gear up for the Federal Reserve meeting and a big wave of tech earnings .
• 0:44
  The tech heavy hitters in the Invesco QQQ Trust are facing some pressure because OpenAI reportedly missed some internal targets , which has triggered a bit of a selloff in names like Nvidia and Oracle .
• 0:58
  On the other hand , traditional sectors are having a moment .
• 1:02
  General Motors and UPS are showing some real strength .
• 1:06
  GM actually raised its 2026 guidance after a great quarter , helping the Dow Jones Industrial Average outperform the tech indices this morning .
• 1:16
  In the macro world , all eyes are on the Fed .
• 1:20
  The FOMC starts its twoday meeting today , and while everyone expects interest rates to stay steady between 3.5 and 3.75 percent , we are all waiting for Chair Jerome Powell to speak tomorrow .
• 1:35
  We are also watching the news regarding a potential peace proposal between the U.S.
• 1:39
  and Iran .
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  This has caused oil prices to stabilize around 99 dollars , leading to a relief pullback in the Energy Select Sector SPDR Fund , which has been our top performer so far this year .
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  So , what should we be doing with our money today ?
• 1:56
  First , I recommend a bit of a rotation into what I call physical goods and value .
• 2:02
  Largecap tech is looking a little expensive right now , trading at over 30 times earnings .
• 2:09
  It might be a good time to look at the Financial Select Sector SPDR Fund or even General Motors specifically .
• 2:16
  These valueoriented sectors offer more tangible earnings .
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  Second , consider looking abroad .
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  U.S.
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  stocks are pricey compared to history .
• 2:25
  The Vanguard Total International Stock ETF , or VXUS , is trading at a significant discount to the S&P 500 .
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  Putting about 15 to 20 percent of your holdings there could protect you if the domestic market sees a correction .
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  Finally , keep an eye on interest rates .
• 2:45
  The 10year Treasury yield is at 4.36 percent .
• 2:48
  If that peace deal goes through and energy prices drop , inflation could cool down , which is great for real estate .
• 2:56
  You might look at the Vanguard Real Estate ETF , known as VNQ , as an aggressive way to play a scenario where yields fall .
• 3:05
  My final tip for the day : keep some cash on the sidelines .
• 3:09
  Alphabet and Microsoft report earnings after the bell tomorrow , and you will want that dry powder ready to buy any dips if their longterm outlook for AI stays strong .
• 3:20
  Thanks for tuning in to Spy Trader .
• 3:22
  I will be back in a few hours with more updates .
• 3:25
  Until then , keep those eyes on the charts and your feet on the ground .