Folks,
Market Observations for the Week: The E-mini made a correction low at 6751.5 after hours on 2/5 and the SPX has been rallying. The NYSE composite has made a new ATH on Monday. We are looking at the 2/17-2/18 New Moon/eclipse as being a potential major turn for both the SPX and gold/silver. The SPX correction low last week came on the 49-day correction low from the key 11/21 low. The SPX may still be making a “rounding top” here with the XLF topping on I/6/26 and the XLE rotating into leadership on 2/4/26. Silver and gold also made a low on 2/5 and may have kickstarted a B-Wave rally that could also last into the 2/17-2/18 turn window. The rotation of the XLE into a market leadership position favored our oil stocks: XOM/CVX/COP/SLB last week. Stock selection will be key going into 2026, and we do favor an important intermediate peak in the SPX in Q1 and that could happen close to the 2/17-2/18 turn window. The XLE is in a seasonally strong period(Jan-Apr) 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 2/6 to include: 50% cash, 0% SLV, 10% SILJ, 0% Barrick, 20% DIA, 20% XOM/CVX/SLB.
TURNING POINT DAY
Our turn window for this week is 2/11.
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