Market Observations for the Week: The SPX finally made a new ATH above 6920 early Wednesday and the CBOE put/call ratio remains elevated in holiday trading. The VIX looks 5-waves down on the daily chart and ready for a bounce – the SPX could see a selloff into yearend, so we are cautious here. The GDP report for Q3 came it at 4.3% early Tuesday and that supported the market. The Fed announcement of both a $40B/month QE to dampen volatility in the repo market as well as a 25-bps rate cut in the Fed rate is “bullish juice” for the SPX going into 2026. However, stock selection will be key going into 2026, and we will continue to favor commodity stocks and DJIA stocks and look for money flow from the MAG-7 into Russell 2000 stocks. Silver and gold made new ATHs overnight at $72.75 and $4565, respectfully. Our current investment positions were last updated on the 11/28 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 12/15 to include: 25% cash, 25% SLV, 25% SILJ, and 25% Barrick.
TURNING POINT DAY
Our turn window for this week is 12/22-12/23.
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