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The SpaceX Effect: Market Rotation and the Final Frontier · The SPY Trader

• 0:00
  Hello and welcome back to another edition of Spy Trader !
• 0:04
  I am your host , Barnaby Bullseye , and it is exactly 2:30 pm on Friday , June 12th , 2026 , here on the Pacific coast .
• 0:13
  We are coming to you as the market is wrapping up one of the most historic weeks we have seen in years .
• 0:19
  It has been a volatile ride , but we are ending on a high note with some massive milestones for the major indices .
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  Let us jump right into the numbers .
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  The S&P 500 , which many of you track via the SPY ETF , rose half a percent today to close at 7,431.46 .
• 0:38
  That is an incredible 24 percent gain yearoveryear .
• 0:42
  The Dow Jones , or the DIA , also had a great day , adding 0.7 percent to hit 51,202.26 , fueled by gains in industrials and aerospace .
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  But the real story is the bifurcation in the market .
• 0:59
  While the Nasdaq , ticker QQQ , gained a modest 0.3 percent to 25,888.84 , it actually trailed behind because we are seeing a massive rotation of capital .
• 1:13
  The smallcaps over in the Russell 2000 , ticker IWM , were the stars of the indices today , rising 0.8 percent to 2,943.99 .
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  This suggests the market rally is finally starting to broaden out beyond just the giant tech names .
• 1:32
  The headline news of the day , and really the decade , is the SpaceX IPO .
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  Trading under the ticker SPCX , the company made its Nasdaq debut today and absolutely soared .
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  With a targeted valuation of 1.77 trillion dollars , SpaceX has already overtaken Alphabet in market cap on its very first day , driven by its dominance in the Starlink satellite segment .
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  This debut has created what analysts are calling the SpaceX Effect .
• 2:02
  We are seeing major hedge funds clearing their decks , which is just a fancy way of saying they are selling off their winners in the Magnificent Seven to free up cash to buy into this new aerospace titan .
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  That is why you saw names like Apple , at 291 dollars and 25 cents , and Microsoft facing some selling pressure .
• 2:23
  Even Nvidia , which is still the heavyweight champ in the QQQ at 12.9 percent , turned lower this week as investors took profits from the AI supercycle to pivot toward the final frontier .
• 2:35
  In the macro world , we got some relief from the energy sector .
• 2:39
  Crude oil prices tumbled 3.4 percent to 87 dollars and 33 cents a barrel .
• 2:46
  This follows reports of a potential 60day ceasefire deal with Iran that might be signed at the G7 next week .
• 2:54
  This could reopen the Strait of Hormuz and bring some stability back to the global economy .
• 2:59
  While our most recent CPI report showed inflation at 4.2 percent , the core inflation rate cooled to 2.9 percent .
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  This gives the Federal Reserve some muchneeded breathing room .
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  Now , let us talk about how to trade this environment .
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  First , for your strategic core , I still love the Vanguard S&P 500 ETF , ticker VOO .
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  Because it is marketcap weighted , it will automatically adjust as SpaceX matures and enters the index .
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  It is the best way to capture that 24 percent annual growth trend we have been seeing .
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  Second , for those of you looking for growth , you have to look at the space sector .
• 3:39
  If you have a high risk tolerance , you can establish a starter position in SPCX itself .
• 3:44
  If you want something a bit more diversified , check out the ARK Space Exploration and Innovation ETF , ticker ARKX .
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  It holds companies that will benefit from the Starship ecosystem .
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  On the defensive side , look at the iShares 20 plus Year Treasury Bond ETF , ticker TLT .
• 4:05
  With oil prices easing and core inflation cooling , we may have hit the peak for interest rates .
• 4:11
  If the Fed pivots toward cuts later this year , bond holders will benefit from both the 5 percent yield and price appreciation .
• 4:20
  Finally , let us play the broadening market by looking at the iShares Russell 2000 ETF , ticker IWM .
• 4:27
  Big tech is getting a little crowded , and today's smallcap outperformance tells us that as inflation fears fade with falling energy costs , these smaller companies are ready to catch up .
• 4:38
  Shifting some of those tech gains from QQQ into IWM could be a very smart move right now .
• 4:45
  It has been a historic Friday , folks .
• 4:47
  Keep your eyes on the stars and your feet on the ground .
• 4:51
  I am Barnaby Bullseye , and this has been Spy Trader .
• 4:54
  Have a great weekend !