Penny’s Market Musings

The SPY Trader

Fresh news and strategies for traders. SPY Trader episode #1191. Hey there, Spy Traders! It's your pal, Penny Pincher, here, bright and early at 6 am on this Memorial Day, Monday, May 26th, 2025, Pacific Time. Hope you're all enjoying a welldeserved day off, maybe firing up the grill, but don't worry, Penny's got you covered with the market scoop. So, the big news is, well, the market's closed today, duh! It's Memorial Day! But let's look back and ahead, shall we? Last week was a bit of a rollercoaster, with the Dow, S&P 500, and Nasdaq all taking a tumble thanks to those good ol' concerns about the US fiscal outlook and those pesky trade tensions. Remember when Trump warned that iPhones sold in the US better be made here or face a tariff? Yeah, Apple took a hit because of that. Now, for the juicy bits. 2025 has been a 'meh' year so far. We're seeing some volatility because of, surprise, surprise, US policy uncertainty and all this AI craziness. But don't lose hope! Some folks think the S&P 500 can still squeeze out some singledigit gains by yearend. Investor enthusiasm has been kinda 'tamped down', which, between you and me, Penny thinks might be a sweet buying opportunity. Plus, get this, Trump delayed those 50% tariffs on the EU 'til July 9th, so markets should open with a little skip in their step on Tuesday. Alright, let's talk sectors. In the first quarter, the S&P 500 had its worst performance since way back in Q3 2022. But the Energy sector actually did pretty well because natural gas prices went up. Health care, consumer staples, and utilities? Those are your 'safe haven' sectors, so they held up okay. Tech though, with giants like Apple, Microsoft, and NVIDIA? Not so much. Speaking of tech, Microsoft and Meta reported strong earnings, so AI stocks are hot right now. Keep an eye on Nvidia’s earnings this week too. So, what's Penny's play here? Cautious optimism, my friends! Given all the ups and downs, be careful out there. Make sure you're not putting all your eggs in one basket diversify! Focus on companies that are actually making money, and keep an eye on those trade talks. If the market dips, that might be a chance to snag some stocks at a discount. And seriously, stay informed! Read the news, listen to Penny, and don't make any rash decisions. Given the way things are shaping up, you might want to peek at international stocks; they've been outperforming us this year so far. Oh, and one last thing: value stocks and those defensive sectors I mentioned earlier might be worth a look too. That's all for today, folks! Enjoy your Memorial Day, remember to honor those who served, and I'll catch you next time on Spy Trader!