Market Observations for the Week: The SPX made a new ATH at on 6985.83 Monday and then started a correction that ran into Tuesday. Our TRIN-5 indicator closed above 6.0 which is bullish – we could see more correction here, but the SPX will be making higher highs soon. Our plan here is to buy 3-wave corrections in the DIA on the hourly chart. The news from Iran and the threat of another US attack have us watching the oil sector for some long setups in our favored energy stocks: XOM/CVX/COP/SLB – oil prices are breaking out above $61. How the SPX and gold/silver trade into the 55-day Fibonacci step out on 1/14 will dominate our thinking later into Q1 2026. Stock selection will be key going into 2026, and we do favor an important intermediate peak in the SPX in Q1 2026 – XOM/CVX/SLB is coming into a seasonally strong period. Our current investment positions were updated on Friday’s close: 20% cash, 5% SLV, 15% DIA, 25% 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 1/12 to include: 20% cash, 10% SLV, 20% SILJ, 10% Barrick, 20% DIA, 20% XOM/SLB.
TURNING POINT DAY
Our turn windows for this week are 1/11-1/12 and 1/14.
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