Market Observations for the Week: The SPX, NDX and IWM opened December trading with a “Negative Volume Reversal Day” on Monday. The SPX made a low-volume test of an “overhead supply zone” on Friday and found resistance and is now consolidating into the 12/3-12/5 Full Moon Timing Window. The SPX is giving us just a 3-wave pullback from its 10/29 ATH into the 34-day Fibonacci step out window and Full Moon. The 3-star critical reversal day on 11/28 for the SPX and gold came in as a HIGH. Stan Harley’s superb cycle work for the SPX argued for a correction low on the last week in November, but it appears to have come in on 11/20. After a small correction here for the SPX, we are looking for higher prices for the SPX into Friday and a new ATH. Gold and silver also rallied into the 11/28-12/1 turn window turn after Comex option expiration last week and look stronger than the stocks here. Our current investment positions were updated on Friday’s close: 20% cash, 5% QQQ, 20% GDXJ/SILJ/XLE, 10% 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 Monday to include: 25% cash, 25% SLV, 25% SILJ, and 25% Barrick.
TURNING POINT DAY
Our turn window for this week is 12/1-12/2 – the 34-day Fibonacci step out from the 10/29 SPX ATH.
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