Market Observations for the Week: From Tuesday, where the SPX had made a “symmetry decline” to 6575, the SPX only managed a “corrective 3-wave rally” into the post-NVDA earnings bounce on the 11/20 New Moon before making a “key reversal day” down to test its 100-dma. We still view this as a bull market correction which could undercut 6500 into early next week. Friday is a monthly option expiration, and the current volatile environment could be further enhanced by the large geo-storms from the sun striking the earth’s atmosphere. We are expecting a big market turn by 11/25-11/26. Investors and traders should add to exposure in the energy sector for the next rally phase in our opinion (XOM/CVX/XLE). Our fractal models and cycle analysis pointed to a chance of severe volatility going into the last week of November and we are riding through it. Gold and silver have the potential for more pullback into 11/25-111/26 (the Moon ingress into Aquarius). 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: 25% cash, 0% SLV, 0% GLD, and 25% Barrick.
TURNING POINT DAY
Our turn windows are is 11/17-11/18 and 11/20-11/21.
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