"PLTR's 7% dip yesterday is what I've been warning traders about for weeks." Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance Two weeks ago, I wrote about how the AI sector could soon head south. And yesterday we got our first big sign that the AI unwind is happening. Tech giant Palantir (PLTR) dropped 7% on earnings, pushing the entire market lower. The dip came after Wall Street analysts raised concerns about the company's expensive valuation. This is precisely what I've been warning about. It's why I've been focusing on defensive plays in The War Room and Catalyst Cash-Outs. The truth is… Wall Street eventually goes from buying high to selling higher. When that happens, you don't want to be the one left holding the bag. Which is why I have two more defensive plays to add to your watchlist today. One is The Consumer Staples Select Sector SPDR Fund (XLP). The SPDR fund contains staples such as Walmart (WMT), Coca-Cola (KO), and Procter & Gamble (PG). It's up just 1.6% this year - badly underperforming the S&P 500's 18% gain. As PLTR's move spooks the market, money could start flowing into defensive plays like XLP. Another defensive group I'm watching is The Healthcare Select Sector SPDR ETF (XLV). XLV is not far behind XLP in terms of performance, showing a gain of only 7.1% for all of 2025. The XLV ETF contains healthcare staples like Eli Lilly & Co. (LLY), Johnson & Johnson (JNH) and AbbVie Inc. (ABBV). Again, PLTR's recent pullback has put defensive plays like XLP and XLV on my radar for trades in The War Room. |
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