Swami Weekly Wrap: Oct 26th, 2026 [USD Buy signal hits; equity caution warranted]

Hi Swami Subs,

Last week’s call to buy the dip in value / Asset Heavy names worked well as signal strength continued to rotate away from the crowded AI / semiconductor trade and toward more traditional “old economy” businesses. Swami All-Equity gained +1.2% while SPY declined -0.4%, helped by strength in Energy and other lower-beta areas of the portfolio.

That rotation is still showing up this week. Higher-quality and lower-beta equity exposures are holding up better, while small caps, higher-beta names, and parts of value are becoming more fragile. At the same time, the macro board added another signal: the US Dollar triggered a buy last Tuesday, joining Bitcoin and the S&P 100 as open positions.

Bonds are also becoming more interesting. TLT has finally worked its way back toward trend and has a chance to establish its first meaningful higher low in a while. It is still bearish — but at least the chart is starting to wake up.