Folks,
Market Observations for the Week: The SPX gave us a second rally say in a row into the 3/17-3/19 New Moon Timing Day. However, we are concerned about a post-Fed Day slam down in the SPX and are being very defensive. Signs of credit risk, illiquidity, and the obvious geo-political risk are warning signs here for a market swoon this week. The SPX took out the December low and that is bearish, and we are wary of a post-Fed plunge tomorrow. Accordingly, we are raised cash and will watch the market closely on Fed Wednesday. It is important to keep powder dry here in this market with all the risk factors present. We could see a plunge down through the 200-dma after Powell’s address tomorrow. The leadership of the SPX has shifted from the XLF(financials) which topped in January to the XLE(energy stocks) which are both late-cycle sectors in a topping bull market – this still makes us cautious on the future longevity of this stock bull market. Silver and gold peaked on the 3/3 Full Moon and were then sold down into the New Moon Timing Window today – we still hold a core position in the junior miners. The XLE is in a seasonally strong period(Jan-Apr) and is still favored in our work for 2026 – we also like the MOO ETF(agricultural). Our current investment positions were updated on the 3/10 close: 60% cash, 0% SLV, 0% DIA, 10% MOO, 5% GDXJ/SILJ/XLE, 5% 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 3/10 to include: 90% cash, 0% SLV, 0% CDE, 0% Barrick, 0% DIA, 10% XOM/CVX/COP.
TURNING POINT DAY
Our turn window for this week is 3/18-3/19.