The Alphahorn Swing System has had a very nice run. Energy and the Financials are up 33% on their recent trades, just behind the SPX, RUT and DOW are up 24%, 23% and 21% respectively on their current trades, and Real Estate, and the Nasdaq and Silver have done quite well returning 18%, 16% and 15% on their current short positions. This is exactly what I created the System to do, to catch and to stay on nice waves and to ride them for nice profits. There will be frustrating times, when the markets chop and small losses are taken, but runs like these ultimately outweigh the choppy losses and produce year in and year out returns far exceeding what most hedge funds and money managers return. We’re not quite half way through this trading year, and if one were to cash out today and go home, the profits generated by the Alphahorn System would be over 30%!!!
As I noted mid-day on Friday, there is one signal alert and that is for Gold. The huge up day for Gold on Friday managed to wipe out most of its paper profits generated on the short side, but those who took the aggressive trade I noted, should have been able to lock in some profits. The Gold chart below is that of the new system presentation and it no longer requires a study of the 30 min chart, but only that GLD makes a higher high on Monday to confirm the trade to the long side. The remaining indexes remain short, though silver is looking to be joining Gold on the long side soon.
Below are the two charts that I believe show very compelling evidence that this pullback or perhaps this stage of the pullback is nearing its end. On the daily Renko, the indicator below the price chart is very reliable when it builds divergence, whether negatively or positively vs. price. It is currently building positive divergence pointing to a similar move by the SPX to follow. Below is the weekly NYMO, BPSPX chart. I’ve been posting it for the past couple of weeks, noting that we shouldn’t expect a bottom until the SPX has made a lower low, but that the low was in for the NYMO. It is playing out just as expected. Now I’m watching for the NYMO to complete its higher low, once that occurs, the bottom could be in.