Market Observations for the Week: On Tuesday, the SPX made a symmetry decline down to 6574 in our fractal turn window ahead of the big earnings report from NVDA after the market close on Wednesday. We view this as a bull market correction which should be bought. We expected big volatility and an important turn in the SPX by the 11/19-11/21 New Moon Timing Window and we may have seen it on Tuesday. A negative reaction to the NVDA earnings report could give us an undercut below SPX 6500 by 11/21-11/24 – investors and traders should add to exposure in the energy sector for the next rally phase in our opinion (XOM/CVX/XLE). The SPX correction from October is continuing, with a volatile tape, into the last week of November in our opinion. The unconfirmed new ATH in the DJIA on 11/14 fueled the current leg of market correction. Our fractal models and cycle analysis point to a chance of severe volatility going into the last week of November. Gold and silver have the potential for strong pullbacks into Tuesday before a rebound into the 11/20 New Moon. We believe that oil stocks (XOM, CVX) should be acquired here on dips for the intermediate term. Our current investment positions were updated on Thursday’s close: 20% cash, 0% 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 Thursday to include: 100% cash, 0% SLV, 0% GLD, and 0% GDXJ.
TURNING POINT DAY
Our turn windows are is 11/17-11/18 and 11/20-11/21.
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