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Apple’s AllTime High and the AI Reality Check · The SPY Trader

• 0:00
  Hello everyone and welcome back to the Spy Trader podcast, the show where we break down the charts so you can rest easy.
• 0:07
  I am your host, Sunny Sideup, and it is 2:30 pm on Tuesday, October 13th, 2026, out here on the Pacific Coast.
• 0:14
  We are halfway through October, and the market is definitely keeping us on our toes today.
• 0:21
  Right now, we are seeing the S&P 500, our favorite SPY, sitting near record levels at about 7,805, while the Nasdaq, the QQQ, is at 27,204.
• 0:31
  But do not let those high numbers fool you; there is a lot of nervous energy in the air as we wait for tomorrow's critical inflation data.
• 0:38
  Everyone is in a bit of a defensive crouch right now.
• 0:41
  Looking at the sector performance, it is a tale of two markets.
• 0:45
  In the tech world, Apple is the absolute star of the show.
• 0:48
  Apple hit an alltime high of 348 dollars and 15 cents today.
• 0:52
  It was a triple threat for them: the launch of the HomeView smart home display, a record 22 percent global iPhone market share, and JPMorgan raising their price targets.
• 1:03
  However, it is not all sunshine in tech.
• 1:05
  The AI infrastructure trade is reeling from an OpenAI revenue reset.
• 1:10
  Reports indicate OpenAI’s annualized revenue is closer to 50 billion dollars rather than the 70 billion previously signaled.
• 1:17
  This news sparked a selloff in suppliers and builders like Nvidia, Broadcom, and Oracle, as investors question if AI demand is hitting a temporary plateau.
• 1:26
  Meanwhile, bank earnings are in full swing.
• 1:28
  JPMorgan and Citigroup showed some resilience, but Goldman Sachs is facing skepticism because dealflow is struggling in this highrate environment.
• 1:36
  The Energy sector, or XLE, is our top performer today, up 1.5 percent.
• 1:41
  This is because geopolitical tensions in the Middle East are keeping Brent Crude elevated near 105 dollars a barrel.
• 1:49
  Over in healthcare, the XLV fund is trailing, largely because Johnson and Johnson saw its stock plummet 6 percent after its MedTech division missed sales estimates.
• 1:58
  In the background, the real master variable is the 10Year Treasury Yield, which is hovering near a multidecade high of 5.24 percent.
• 2:06
  New York Fed President John Williams signaled today that one final rate hike in 2026 is likely to combat this energydriven inflation.
• 2:14
  We also have to look at the labor market, which showed a significant cooling with only 29,000 jobs added in September.
• 2:21
  It is a bit of a mixed bag; bad news for the economy can be good news for those hoping the Fed will stop hiking, but it raises fears of a hard landing.
• 2:29
  So, what is the game plan for your trading desk?
• 2:32
  First, we have a strategy for the shift from AI builders to platforms.
• 2:36
  The OpenAI news shows the market is looking for companies that actually monetize AI.
• 2:41
  I recommend buying Apple, ticker A A P L, or the Technology Select Sector SPDR, known as X L K.
• 2:48
  Apple’s ecosystem dominance and new hardware provide a tangible growth runway that is less dependent on the chipspending war.
• 2:56
  Second, for fixed income fans, look at yieldcatching.
• 3:00
  With the 30year yield touching 5.7 percent, we are in peak yield territory.
• 3:05
  I suggest dollar cost averaging into the iShares 20 plus Year Treasury Bond ETF, ticker T L T.
• 3:11
  At a price around 78 dollars, it offers a 5.5 percent yield that provides a significant buffer.
• 3:18
  If the economy cools further, those yields will fall and bond prices will rise.
• 3:23
  Third, we have a strategy for hedging.
• 3:26
  Between geopolitical volatility and tomorrow’s likely hot inflation print, you might want to allocate 5 percent to SPDR Gold Shares, ticker G L D.
• 3:35
  Gold is trading near 4,180 dollars an ounce and acts as a stabilizer against currency concerns and regional conflict.
• 3:42
  Finally, let us look at a tactical play in real estate.
• 3:46
  Even with mortgage rates high, today's existing home sales beat expectations.
• 3:50
  The Vanguard Real Estate ETF, ticker V N Q, has been bloodied recently, but its dividend yield is now near 3.8 percent.
• 3:57
  For longterm investors, this represents a washout entry point in highquality REITs that own data centers and industrial logistics, which are still growing.
• 4:07
  That is all for this afternoon update.
• 4:09
  Keep your eyes on those yields and I will see you back here in a few hours.
• 4:13
  This is Sunny Sideup for Spy Trader, wishing you a profitable afternoon.