Summary
The September 2, 2026 US Watchlist PDF holds just three entries — down from five on August 4. DBA and DRS have both been removed. DBA graduated to the Mex Pete Model Portfolio on September 2 at 28.50 buy level). DRS (Leonardo DRS, buy >18.50), COPX (buy >295). This is the thinnest the US Watchlist has been in the documented series. [Source: PSE, Current-US-watchlist-September-2-2026]
Key Claims
- US Watchlist holds 3 entries as of September 2, 2026: UDN (>95), XAR (>$295). — confidence: high
- DBA removed — graduated to the Mex Pete Model Portfolio at 27.50). — confidence: high
- DRS removed — did not enter the portfolio. No entry visible on the Sep 2 portfolio sheet. Setup likely failed or was pulled. — confidence: medium
- No new buy levels or level changes for the remaining three names vs July 28/August 4. — confidence: high
Watchlist Changes
- REMOVE: DBA — triggered; now an active portfolio position at $29.49 (see 2026-09-02-mex-pete-portfolio-snapshot). [Source: PSE, Current-US-watchlist-September-2-2026]
- REMOVE: DRS — removed without portfolio entry. No documented stop or trigger. [Source: PSE, Current-US-watchlist-September-2-2026]
Concepts Referenced
Emma’s Analysis
The watchlist has been stripped to its core commodity/defense thesis: dollar-bearish (UDN), copper (COPX), and aerospace/defense (XAR). With DBA graduated and DRS pulled, the pipeline is running thin — only 3 setups remain, and none have triggered yet. This is consistent with a Winner’s Curse Phase where the easy breakouts have fired and the remaining setups require more extreme conditions (COPX >295 is historically high).
DRS’s quiet removal is notable — it was added to the watchlist at the >$50 buy level alongside the Gann #24 commodity breakout thesis (July 23). Its disappearance without a portfolio entry suggests the defense sector didn’t deliver the expected breakout, or Anderson’s conviction waned. The portfolio already holds XAR on the watchlist as the defense expression, and DRS may have been redundant.
The thinning pipeline is a double-edged signal: on one hand, it means the system has deployed capital into the opportunities it identified (DBA, CGS, SFR, AME, IEFA); on the other, if the current 5-position portfolio gets stopped out, there are only 3 fresh setups waiting — and the portfolio would need to rebuild from a much weaker base. Watch UDN >$18.50 as the next potential trigger: it would double down on the US Dollar Hegemony weakness thesis that IEFA already expresses. [Source: PSE, Current-US-watchlist-September-2-2026]
Cross-references: 2026-08-04-us-watchlist-snapshot, 2026-09-02-mex-pete-portfolio-snapshot, 2026-07-28-us-watchlist-snapshot