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The NVDA Wildcard: Defense Mode Activated

The NVDA Wildcard: Defense Mode Activated

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Fresh news and strategies for traders. SPY Trader episode #1431. The market is attempting a cautious rebound after four days of selling, with the S&P 500 below its 50day moving average. The primary catalyst today is the highly anticipated Nvidia (NVDA) earnings report after the close, which will determine the immediate direction of the AI trade. Amid mixed retail results suggesting cooling consumer spending, institutional money is rotating out of highvaluation growth sectors (Tech, Consumer Discretionary) and into defensive areas like Healthcare (XLV) and Energy (XLE). Traders are advised to prioritize patience, overweight defensive ETFs, utilize fixed income (BND) for stability, and hold existing core AI positions while awaiting the postNVDA signal.
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