Market Observations for the Week: The SPX gave us a 3-wave correction into Monday and may have started another leg into the 1/5-1/6 turn window which should give us a new ATH. We saw very high “short volume” on SLV and AGQ for Friday and Monday and believe that a further short squeeze in silver could give us a test of the overnight Sunday high at $82.67. How the SPX and gold/silver trades into January 5 will dominate our thinking into Q1 2026. The VIX is giving us a possible EW 1-2, i-ii count on the daily chart and could spike to give the SPX a slap in the face going into the New year. Stock selection will be key going into 2026, and we do favor an important peak in the SPX and gold/silver sometime in 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 12/29 to include: 50% cash, 50% 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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