Monthly Report

We are very close to our long-term downside target of 350 on GLD and there is a seasonal tendency for a rally into January. You can buy this daily stochastic recycle, and add on a weekly recycle.

Equities have consolidated for a month. Key indexes such as Transportations showed are now weakening but the economy is stronger than many expect or believe.

We moved to a buy in GLD last month and will now switch back to Neutral as objectives have been hit. Below 380 suggest the decline should resume. Investors can hold but be careful and use a stop loss. Above 440 would be bullish.

Accumulation models on the stock indexes have improved. SPY weekly stochastic is a sell pattern. The daily is in buy mode.

We rate sentiment POSITIVE here because the intermediate sentiment indicator has started to advance and Put/Call is showing a surprising resurgence in bearishness (a contrarian signal). Sentiment is set up for an advance. The intermediate picture is improving.

GLD could double bottom in the 400-area, maybe on a false breakdown of 400. Watch this carefully, we may end up moving to a buy on GLD.

Oil and Gasoline have had huge rallies because of Iran. Watch oil via USO, UGA and DBC carefully. The oil stocks have broken out. Oil Stock ETFs are through resistance, but they hit price targets and are weakening now.

We believe we are close to an intermediate bottom, likely in late April/early May.

We are overweight XLI and XLU. These have strong accumulation models and intermediate charts are better than most of the sectors. Indeed, both hit all- time highs.

It still looks like a decline in the first part of the year and a strong end to 2026. We are cautious, as the average decline in a midterm election year is around 18%.