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Transcript

The Great Rotation: SpaceX, Small Caps, and the 2026 Bull Market · The SPY Trader

• 0:00
  Hello everyone and welcome back to the Spy Trader podcast !
• 0:04
  I am your host , Barnaby Bull , coming to you live at 2:30 pm on Monday , July 20th , 2026 , here in the beautiful Pacific time zone .
• 0:14
  It is a pleasure to have you with us for our afternoon market update .
• 0:18
  We have a lot to unpack today as the market continues to navigate some pretty choppy waters , but do not worry , we are going to break it all down in a way that makes sense for your portfolio .
• 0:29
  It has been a relatively quiet but cautious Monday on Wall Street .
• 0:33
  Investors are really holding their breath as we head into a massive week for Big Tech earnings .
• 0:39
  The S&P 500 , which we track through the SPY ETF , dipped about zero point two percent today to close at 7,443.28 .
• 0:50
  Even with that little slide , we are still looking at a solid yeartodate gain of roughly nine to eleven percent .
• 0:58
  The Nasdaq , or the QQQ , was basically flat , slipping just under zero point one percent .
• 1:04
  We are seeing a bit of a hangover there from last week's volatility in semiconductor stocks .
• 1:10
  Meanwhile , the Dow Jones Industrial Average dropped zero point six percent , largely because Apple took a bit of a breather from its recent highs .
• 1:20
  But the real story of 2026 continues to be the little guys .
• 1:25
  The Russell 2000 , which you might know as the IWM , fell zero point seven percent today , but it is still up over eighteen percent for the year .
• 1:33
  People are moving money out of those giant tech companies and into smaller , domestic businesses , and that rotation is the name of the game right now .
• 1:42
  Looking at the sectors , Communication Services was our big winner today , gaining zero point seven four percent .
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  On the flip side , Healthcare was the laggard , dropping over one percent .
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  We are also keeping a very close eye on the Energy sector .
• 1:58
  With the ongoing conflict between the U.S.
• 2:00
  and Iran in the Strait of Hormuz , Brent crude oil has spiked to around ninety dollars a barrel .
• 2:06
  While that makes filling up the car more expensive , it is actually boosting revenues for energy companies in the XLE fund .
• 2:14
  In the world of finance , the big banks are smiling .
• 2:17
  JPMorgan Chase and Goldman Sachs recently hit record earnings , thanks in large part to the SpaceX IPO .
• 2:25
  Can you believe that ?
• 2:27
  SpaceX went public at a one point seven seven trillion dollar valuation !
• 2:32
  It was the largest IPO in history and a huge win for the dealmakers .
• 2:36
  We also saw some fireworks in the entertainment world .
• 2:40
  AMC Entertainment surged nearly twentyseven percent today !
• 2:43
  They absolutely crushed their earnings , reporting the highest quarterly revenue in their hundredsixyear history .
• 2:50
  It turns out everyone wanted to see the new movie The Odyssey this summer .
• 2:55
  On the macroeconomic front , things are looking okay .
• 2:58
  The June inflation report gave us a glimmer of hope with flat core inflation .
• 3:03
  Because of that , there is only a twelve percent chance the Fed raises rates this month .
• 3:08
  Right now , the Federal Funds Rate is holding steady between three point five and three point seventyfive percent .
• 3:14
  Now , let us talk about what you should be doing with your money .
• 3:18
  My first big recommendation is to look at the Vanguard Total Stock Market ETF , or VTI .
• 3:25
  While we love the S&P 500 , 2026 is all about broadening your exposure .
• 3:32
  VTI lets you capture those fastgrowing small and midcap stocks that the topheavy QQQ misses .
• 3:38
  Second , if you want to hedge against those rising gas prices and geopolitical stress , take a look at the Energy Select Sector SPDR Fund , also known as XLE .
• 3:49
  With oil at ninety dollars , major players like ExxonMobil are offering great dividends .
• 3:56
  For those looking for steady income , the Vanguard Real Estate ETF , or VNQ , is a great pick .
• 4:03
  It is up twelve percent this year , and it gives you a piece of the AI boom through datacenter REITs like Equinix .
• 4:10
  Plus , a three point three seven percent dividend yield is nothing to sneeze at !
• 4:15
  Finally , do not forget about international opportunities .
• 4:19
  The Vanguard FTSE Emerging Markets ETF , or VWO , is outperforming the U.S.
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  in some regions .
• 4:27
  It is a fantastic way to get exposure to AI hardware leaders like TSMC and the newly listed SK Hynix at a lower price than U.S.
• 4:36
  tech stocks .
• 4:37
  To wrap things up , the bull market is still healthy , but it is maturing .
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  Success for the rest of the year is going to come from being selective and diversifying globally .
• 4:48
  Do not just sit on your tech gains ; look for value where others are not looking .
• 4:52
  That is it for this edition of Spy Trader !
• 4:56
  I am Barnaby Bull , and I will see you in a few hours for the next update .
• 5:00
  Happy trading !