Market Observations for the Week: The SPX finally made a slightly new ATH above 6937 on Friday, but the “blowoff and correction” in silver overnight Sunday is dominating our thinking. The extremely low put/call ratio on SILJ (~9740 puts/1,270,000 calls) seen on Friday’s close makes us cautious on the PM sector going into Monday/Tuesday. How the SPX and gold/silver trades into January 5 will dominate our thinking into Q1 2026. The VIX looks 5-waves down on the daily chart and could bounce to give the SPX a slap in the face going into the Fed minutes on Tuesday. Stock selection will be key going into 2026, and we do favor an important peak in the SPX and gold/silver going into Q1 2026. Our current investment positions were updated on the 12/26 close: 30% cash, 0% QQQ, 15% 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 12/28 to include: 100% cash, 0% SLV, 0% SILJ, and 0% Barrick.
TURNING POINT DAY
Our turn windows for this week are 12/29-12/30 and 1/2-1/5, the Full moon Timing Window.
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