Folks,
Market Observations for the Week: The SPX appears to be in a post-Fed Day slam down that should continue through quad witching expiration. We did recommend raising cash for this event and believe that the worst will be over by Tuesday. At that point, we could see the SPX below 6500 in our 3/24-3/25 turn window. and the PM sector at a tradable low. Signs of credit risk, illiquidity, and the obvious geo-political risk are warning signs here for the market swoon this week. The SPX took out the December low and that is bearish, and we are wary of a post-expiration SPX swoon. It is important to keep powder dry until we see a larger VIX spike into early next week – that could coincide with a crude oil spike larger that the market is comfortable with. We could see a plunge down through the 200-dma into expiration. 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 on THursday – 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.