Weekly Report

We still are looking for another decline into the end of April. On last Thursday’s Conference Call we discussed the possibility that Small Cap stocks perform well in the second half of 2026, perhaps even becoming new leadership.

Indicator formation suggests there should be more downside. We still think there will be problems into April.

Our plan has been to nibble at attractive names with the idea that we will be invested around April expiration and into May. IYW could test 166, and if that breaks a test of 158 is possible. All rate indexes broke out of long-term downtrends that had been in effect since 1995.

Ideally the month end close on GLD will be in this 400-area or a bit below. DBC’s advance should end in the next couple of months, which would suggest oil prices should come down.

This market should try and bounce here but we think this is another selling opportunity, and we should turn and make new lows into April. We think the current Dollar consolidation has an excellent chance of resolving itself to the upside.

Remember it is options expiration this Friday and a quadruple witching so we could start to see some odd market behavior. TLT has bounced off the lower end of our support range. Back above 88.30 targets the 92 area.
GLD and SLV should be a good bit lower by the end of March, and possibly April as well.

We are seeing some oversold readings that have not done much good for the upside. The equity markets may be shifting from a trading range to a downtrend.

In terms of our forecast, we still look for a decline into April/May, with the strong possibility of the pullback starting in late March.

More downside from here implies our forecasted correction is starting. Realize that in bull markets not all stocks bottom at the same time, but also realize, we have to follow the indicators with the idea we are fully invested around April expiration.

So far, we are basically right on market direction – down but stronger than anticipated. If TLT holds 88 it is still short-term up, and above 90 would be strong. A close below 462 would imply more downside for GLD, which we expect by the end of March.