Weekly Market Report: Unavoidable Deflation
August 10, 2026
Weekly Market Report
Performance of tactical ensemble and strategic allocation
Price action analysis, weekly market summary, and market forecast
Details of tactical ensemble and strategic allocation
Market dynamics discussion and conclusion
Section 2 covers trends in asset performance. We consider asset ETFs and the current market trends and dynamics and their effect on strategies.
Section 3 reviews the performance of our tactical and strategic allocations.
Section 4 argues that deflation may be an inevitable policy choice and there are two scenarios, the good and the bad.
1. Performance of tactical ensemble and strategic allocation
Summary
For the week ending Friday, August 7, 2026:
The weekly strategies tactical ensemble (WRE) gained 2.6% with equal allocation. Year-to-date: +20%
The Price Action Lab strategic allocation (PALSA) gained 3.9%. Year-to-date: +19.3%.
The SPY ETF gained 3.5%. Year-to-date: +14%
For the open positions and any new signals of WRE, see Section 3. The WRE tactical allocation is up 26.2% year-to-date with 1.6x leverage to match the SPY ETF volatility. We also include in Section 3 the PALSA strategic allocation details and the performance when the volatility matches that of the SPY ETF, with 1.7x leverage, which is up 32.8% year-to-date.
2. Price action analysis, weekly market summary, and market forecast
The chart below shows the recent price action in the stock market, and we briefly discuss its impact on market participants and trading strategies.