What Smart Money Did This Week While Everyone Watched AI

Hey Investor,

It was another quiet week on the surface — but under the hood, capital moved fast, and not where you'd expect.

While everyone watched AI, smart money pivoted. Here's what it means.

📊 This Week’s Recap:

• S&P 500: +0.3%

• Nasdaq: +0.1%

• Dow Jones: flat

Markets cooled off after a red-hot AI run — but something more subtle is happening beneath the surface.

🧐 Where Smart Money Quietly Rotated

• Mid-Cap Growth (MDY): Saw notable inflows despite little press — a quiet bet on breadth returning.

• Healthcare (XLV): Up +1.1% — defensive sector leadership reemerging as growth cools.

• Utilities (XLU): Unexpected +1.6% jump — signs of institutional capital hedging macro uncertainty.

💡 Why This Matters

• Institutions may be front-running a regime shift — from momentum-driven narratives to valuation and defensiveness.

• Rotation into “boring” sectors often precedes volatility or policy pivots — smart money tends to move before the headlines.

🧭 Smart Money Action to Watch

• MDY: Accumulation near $560–570 — rising above 20-day and 50-day MAs.

• XLV: Watch continuation above $142, where buyers historically defend dips.

• Options Flow: Defensive exposure surged in names like JNJ and DUK — not sexy, but telling.

📅 What’s Next

• 06/28: Core PCE Index — key inflation barometer.

• 07/01: ISM Manufacturing PMI — market will read this as an economic re-acceleration or warning flare.

• Next Week: Start of Q2 pre-earnings chatter.

Stay sharp, stay skeptical, and always watch what money does — not what headlines say.

Best regards,
—StocksTrades.AI Newsletter

Disclaimer: This newsletter is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.