Major Structural Changes Happening in Markets
It's Time To Zoom Out As An Investor
Our Annual 2026 Cycle Forecasts and Magnificent 7 Cycle Forecasts can be found here.
This is a key piece of our strategy to stay on the right side of the market!
Here’s a quick rundown of what to expect:
1 PDF deck covering 20 different key assets (for Annual Cycle Forecasts) OR 7 stocks (for Magnificent 7)
Each Forecast includes 3 key Cycles - Cycles Composite (our “Secret Sauce”), Energy Cycle (estimates the Power behind a move) and Seasonal Cycle
Access to our team to ask any additional questions anytime of the day or night, including weekends!
Founding Members get the added benefit of requesting us for the Cycle Forecasts for ANY asset.
Please note that we’ve updated the composition of our Cycles Composite (our “Secret Sauce”) in order to increase its accuracy. These modifications are made based on the current market conditions and the backtesting results.
There are some major market dynamic changes occurring right in front of us that we need to be aware of in order to position appropriately!
Commodity Cycle is ready to ramp up
S&P 500 relative to Gold is hovering right in the support region.
The rounding top type of price action is suggesting that this support is on the verge of giving in.
Once it does, the ratio could fall precipitously indicating that Gold is outperforming the S&P 500.
Historically, that could mean that either Gold is rising more than the S&P 500, but also at times Gold is falling less than the S&P 500.
But more importantly, it’s been indicative that the Commodity Cycle is beginning to pick up steam and is THE asset to be heavily allocating to.
Small Caps are favorites to outperform within the US stock market
Small Caps have broken out of a multi-year downtrend line relative to the S&P 500.
This is a change in character, indicating that the market is favoring Small Caps.
We’re also seeing Small Caps relative to the equal-weighted S&P 500 ($RSP) breaking out of a multi-year basing after a deviation below support.
Together with the above chart, it suggests that Small Caps are very likely to be an outperforming area of the US stock market going forward.
Emerging Markets are essential to increase exposure to
Emerging Markets ($EEM) relative to the S&P 500 has put in an inverse head and shoulders basing pattern with the ratio breaking above the neckline.
This is very different to the type of price action we’ve seen on this ratio in the past few years.
We’re getting clear, objectives signs here that Emerging Markets are ready to take the baton from the S&P 500 in the coming weeks and months.
This would also make sense with the Trump administrations “weak dollar” approach, given that Emerging Markets tend to perform extremely well when the US Dollar index is weakening.
In the next section, we’re going to provide you with 3 attractive international stock market setups.
Then, we’re going to highlight 1 very attractive AI-related US stock with the thesis behind it.
Lastly, we’re going to outline a Tariff Playbook that we recently came across to help all our members navigate the future instances when Trump threatens tariffs.
Find our membership cost/benefits below.
If you’re serious about Making Money (our primary goal at Cycles Edge), then the Premium Sections are key for you!
