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Market Reset: From Tech Giants to Defensive Havens · The SPY Trader

• 0:00
  Good morning , traders !
• 0:02
  It is 5 am on Friday , February 13th , 2026 , here in the Pacific time zone .
• 0:08
  I am your host , Sunny Sideup , and you are listening to Spy Trader .
• 0:12
  We have a lot to unpack this morning as we wrap up a week that has felt a bit like a roller coaster , but without the fun picture at the end .
• 0:20
  After the S&P 500 hit that massive milestone of 7,000 back in January , the market is currently going through a bit of a valuation reset .
• 0:31
  People are starting to ask the tough questions about when all this spending on artificial intelligence will actually show up in the bank accounts .
• 0:38
  As of right now , the S&P 500 , which we track through the SPY ETF , is trading around 6,818 .
• 0:48
  That is down about 1.5 percent for the week .
• 0:52
  The Nasdaq100 , or the QQQ , has had it even tougher , falling over 2 percent as a trillion dollars in market cap evaporated from the Magnificent Seven .
• 1:03
  Even the Dow Jones , the DIA , which usually holds its ground , fell over 1 percent in the last session to close near 50,121 .
• 1:14
  The big story is the great rotation .
• 1:16
  Investors are moving out of growth stocks and into defensive sectors .
• 1:21
  We saw Amazon announce a mindboggling 200 billion dollar investment plan for 2026 , and Microsoft is also spending big .
• 1:30
  This has investors worried that these massive costs will eat into profit margins .
• 1:35
  Cisco , for example , plummeted over 12 percent yesterday because of rising chip costs .
• 1:41
  On the bright side , we are seeing money flow into utilities , consumer staples , and real estate .
• 1:49
  The VNQ real estate ETF is seeing a nice rebound as treasury yields drop .
• 1:55
  On the macro front , the January inflation report shows headline CPI easing to 2.5 percent .
• 2:02
  That is good news , but core inflation is still a bit sticky , which is why the Federal Reserve is staying cautious with rates currently between 3.5 and 3.75 percent .
• 2:15
  Plus , with a strongerthanexpected jobs report of 130,000 new positions , the Fed does not feel a huge rush to cut rates further .
• 2:24
  In company news , Apple saw shares fall 5 percent yesterday despite strong iPhone demand , simply because the tech selloff was so broad .
• 2:33
  We also saw AppLovin take a 19 percent hit as investors worry about software firms being disrupted by AI .
• 2:41
  So , what do we do with all this ?
• 2:43
  First , I am looking at a defensive rebalance .
• 2:47
  I like the Health Care Select Sector SPDR Fund , also known as XLV .
• 2:52
  Health care offers stability and is relatively immune to the AI spending drama .
• 2:57
  Keep an eye on companies like Vertex Pharmaceuticals and UnitedHealth Group for solid ground .
• 3:03
  Second , let us talk about interest rate sensitivity .
• 3:07
  Since yields are cooling , the Vanguard Real Estate ETF , or VNQ , looks attractive .
• 3:14
  A great example here is Equinix , which recently raised its dividend and gave strong guidance for data centers .
• 3:21
  Third , if you are feeling nervous about geopolitical risks or trade tariffs , consider a hedge .
• 3:27
  The iShares 20 plus Year Treasury Bond ETF , or TLT , is a classic safety play .
• 3:34
  You could also look at gold through the GLD ETF to protect against policy uncertainty .
• 3:40
  Finally , for my longterm friends , do not panic .
• 3:44
  The broad market is currently at a 5 percent discount to fair value .
• 3:48
  Instead of the techheavy QQQ , consider the Vanguard S&P 500 ETF , the VOO , to buy the dip with a bit more diversification .
• 3:58
  That is all for this morning's update .
• 4:01
  Stay cool , keep your eyes on the charts , and I will see you back here in a few hours .
• 4:06
  Happy trading !