Folks,
Market Observations for the Week: The SPX and NDX gave us a Negative Volume Reversal Day on Friday and that could give us some stock market consolidation into Monday/Tuesday. However, we see a possibility of a new run to a new SPX ATH above 6920 by the 12/19-12/22 New Moon Timing Window. The Fed announcement of both a $40B QE to dampen volatility in the repo market as well as a 25 bps rate cut in the Fed rate is bullish for the stock market going into 2026, however, stock selection will be key going into 2026 and we will continue to favor commodity stocks and DJIA stocks. Our Option Premium Ratio has given us a series of bullish “island reversal’ patterns that argues for a new ATH by the second half of December. Silver gave us an ATH at $65.08 early Friday before a correction set in – silver had a 34-wk step out from the 4/7 low last week and looks 5-waves up on the weekly chart – we could see some consolidation for a few days this week. The January fractal patterns for the SPX and silver argue for more rally into yearend, but the Mars ingress early Monday could give us some consolidation in the PM sector going into the 12/19 New Moon. Our current investment positions were last updated on the 11/28 close: 20% cash, 5% QQQ, 20% 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 12/10 to include: 25% cash, 25% SLV, 25% SILJ, and 25% Barrick.
TURNING POINT DAY
Our turn windows for this week are 12/15-12/16 and the 12/19-12/22 NEW Moon.