Folks,
Market Observations for the Week: The SPX traded above 7000 on Wednesday and since then appears to be trading down into the 2/2-2/3 Full Moon Timing Window. The SLV gave us Key Reversal Day on Thursday and we should have exited all trading positions in SLV and silver stocks before the close. The strong open on Thursday for silver and silver stocks gave us a chance to get out early Thursday but our day was occupied with a noon doctor’s appointment, and our eye was off the ball unfortunately. On Friday, silver crashed about 38% and was fiercely driven down by margin call selling. Holding a sizable cash position in this market is favored. Geo-political news from Iran and the Bomb Cyclone storm impacting the eastern US has us watching the energy sector for some long setups in our favored oil stocks: XOM/CVX/COP/SLB. Gold broke down to $4500 early Monday while silver broke to $71 before bouncing. Stock selection will be key going into 2026, and we do favor an important intermediate peak in the SPX by May 2026. The XLE is coming into a seasonally strong period and is favored in our work for 2026 – we also like the MOO ETF(agricultural). Our current investment positions were updated on the 1/30 close: 20% cash, 0% SLV, 10% DIA, 10% MOO, 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 1/30 to include: 60% cash, 0% SLV, 0% SILJ, 0% Barrick, 20% DIA, 20% XOM/CVX/SLB.
TURNING POINT DAY
Our turn window for this week is 2/2-2/3, the Full Moon Timing Window.
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