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The stock market continues to do the expected. Somewhat unexpectedly, if that makes sense. In other words, the bearish setup is so obvious (TA & war/macro) anyone could spot it. But it is doing the right thing. The target is SPX to the pattern top below 6200.

As for strategy, I am holding my leveraged shorts on SPX, NDX and long the VIX (SPXS, TECS & UVXY).

In taking all profits on precious metals shorts (gold, silver and NEM) and hedges (DUST), I am naked long favored precious metals stocks with a view favoring Royalty and Exploration in 2026. I still have quality miners like AEM, CDE and AGI as well.

I do not have much of a strategy in the precious metals because I am currently just waiting the process out. I do want to remind you that on Monday in pre-(US) market the precious metals were at the extreme low areas we’ve held open.

Gold: 4098

Silver: 61.02

GDX: Around 75 as I recall

Those breadcrumb trails still exist on the charts of gold and silver. Pertaining to gold stocks, they do not exist, as the sector recovered into the open and that’s what the chart shows. But I was thinking “hmmm, might we not see a retest of those areas one day during regular hours?”

Here is the GDX daily chart making a pop, gap fill and reversal. This keeps open those lower levels.

In other words, things are normal in the precious metals, and that includes not making much of a rally yet. There could be unfinished downside work. Just an fyi.

I just cannot bring myself to short after this much downside has been put in, but I’ll manage with cash and being short the broad along with holding volatility. In NFTRH 907 I noted that some individual stock shorts could show up and I did that on GOOGL in the trading account. That account will be highly intolerant of any bull games. But with recent success in trading I want to spec a bit on this correction.

As I always say, in general though, cash is the best risk manager during troubled times. You can’t lose and it is still paying income.