Folks,
Market Observations for the Week: The SPX gave us an EW 5-waves down on the hourly chart last week and we are in correction mode going into November. We also have a 3-star critical reversal window for 11/3-11/5 and a Full Moon Timing Window 11/4-11/6 and this argues for big volatility this week. After three days of trading range above its Bollinger Bands last week, the SPX and NDX could give us a “reversion to mean” trade down in the first week of November. We are inclined to buy the dip in our favored energy stocks XOM/CVX/SLB which look poised for outperformance in early 2026. The CPI inflation report for October looked worrisome to us and we prefer the commodity stocks here as early 2026 could bring some strong inflationary pressures. Low grain and crude oil prices could be reversing higher now and that should put even more heat on the consumer in 2026. Gold and silver held up on Monday but could see a spike down into the 10/4-10/6 Full Moon Timing Window. We believe that oil stocks (XOM, CVX) should be acquired here on dips. Crude oil and the XLE look very undervalued compared to the PM sector. Our current investment positions were updated last week: 15% cash, 5% QQQ, 20% GDXJ/SILJ/XLE, 15% XOM/CVX/SLB and 20% physical gold/silver/platinum. We have a 25% overall allocation to our short-term trading account which was last updated on Friday to include: 75% cash, 0% SLV, 0% GLD, 0% IWM, 0% ETHA and 25% XOM/CVX/SLB.
TURNING POINT DAY
Our next turn windows are 11/3-11/4 which is a 3-star critical reversal day and the 11/4-11/6 Full Moon Timing Window.
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