Episode Transcript
Welcome back to Spy Trader !
I'm your host , Wally 'The Whiz' Wallstreet .
It's 5 am on Monday , November 17th , 2025 , Pacific , and we are kicking off the trading week ready to navigate a tricky but opportunityrich market .
The overarching theme right now is rotation , rotation , rotation .
(00:21):
Let's jump straight into the data .
We ended last week with a mixed picture .
The S&P 500 was essentially flat , down just 0.05% , while the Dow Jones Underperformed , shedding 0.65% .
The Nasdaq , however , saw a modest gain of 0.13% , signaling continued , though selective , support for big tech names .
(00:47):
This mixed performance is driving a clear shift under the hood .
Our strongest performer recently was the Energy sector , with the ENRS ETF up 1.68% , benefiting from commodity rebounds .
Technology ( XLK ) was positive but is clearly facing rotation pressure .
On the flip side , the laggards were Materials and Financials , both down almost one percent , reflecting concerns over slowing growth .
(01:15):
Crucially , the 43day US government shutdown has concluded , removing a major political headwind .
However , we're not out of the woods yet , as this shutdown is expected to reduce Q4 2025 GDP growth significantly , lowering forecasts to the 1.0% to 1.5% range .
(01:37):
For company news , all eyes are on NVIDIA ( NVDA ) , whose Q3 results this week will be the definitive barometer for the massive AI infrastructure buildout .
Separately , Alphabet ( GOOGL ) got a huge vote of confidence , as Warren Buffett’s Berkshire Hathaway disclosed a 4.9 billion stake .
(01:58):
Now , for the deeper dive .
We are stuck between persistent inflation and slowing growth .
October inflation hit 5.5% yearoveryear , which is above expectations .
This sticky inflation is why the Federal Reserve , despite having cut rates once to 3.75%4.00% , is hesitant to promise more .
(02:21):
The probability of a December rate cut has fallen , which tends to weigh heavily on highvaluation , ratesensitive growth stocks .
This brings us back to rotation .
With high valuations in technology and a slowing economic forecast , investors are moving into sectors that have lagged the rally , particularly defensive names like Health Care and stable cyclicals like Energy and Industrials .
(02:46):
This suggests we need to be highly selective when approaching largecap tech .
For trading recommendations this week , we are focused on diversification and rotational plays .
First , if you have new money or are looking to rebalance away from concentrated tech bets like QQQ , consider broadening your exposure with a diversified fund like the Vanguard Total Stock Market ETF , VTI .
(03:11):
VTI gives you exposure to mid and smallcap stocks that could see a catchup trade .
Second , let's play the rotation theme .
We favor overweighting defensives and industrials .
Look at the Health Care Select Sector SPDR Fund ( XLV ) for defensive stability , and the Industrial Select Sector SPDR Fund ( XLI ) , which should benefit from the end of the government shutdown and potential infrastructure spending .
Finally , regarding technology exposure (03:39):
be selective .
While NVIDIA ( NVDA ) is a highrisk , highreward AI play , a safer bet is to maintain core exposure in Alphabet ( GOOGL ) , leveraging the signal of confidence provided by Berkshire Hathaway's new stake .
That’s all the time we have for today .
(04:02):
Trade smart , stay safe , and we'll catch you on the next episode of Spy Trader !
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Ruthie's Table 4
For more than 30 years The River Cafe in London, has been the home-from-home of artists, architects, designers, actors, collectors, writers, activists, and politicians. Michael Caine, Glenn Close, JJ Abrams, Steve McQueen, Victoria and David Beckham, and Lily Allen, are just some of the people who love to call The River Cafe home. On River Cafe Table 4, Rogers sits down with her customers—who have become friends—to talk about food memories. Table 4 explores how food impacts every aspect of our lives. “Foods is politics, food is cultural, food is how you express love, food is about your heritage, it defines who you and who you want to be,” says Rogers. Each week, Rogers invites her guest to reminisce about family suppers and first dates, what they cook, how they eat when performing, the restaurants they choose, and what food they seek when they need comfort. And to punctuate each episode of Table 4, guests such as Ralph Fiennes, Emily Blunt, and Alfonso Cuarón, read their favourite recipe from one of the best-selling River Cafe cookbooks. Table 4 itself, is situated near The River Cafe’s open kitchen, close to the bright pink wood-fired oven and next to the glossy yellow pass, where Ruthie oversees the restaurant. You are invited to take a seat at this intimate table and join the conversation. For more information, recipes, and ingredients, go to https://shoptherivercafe.co.uk/ Web: https://rivercafe.co.uk/ Instagram: www.instagram.com/therivercafelondon/ Facebook: https://en-gb.facebook.com/therivercafelondon/ For more podcasts from iHeartRadio, visit the iheartradio app, apple podcasts, or wherever you listen to your favorite shows. Learn more about your ad-choices at https://www.iheartpodcastnetwork.com
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com