The Alphahorn Swing System took small profits on the Treasury Short, which confirmed its BUY/LONG signal on Friday and has 2 new SHORT/SELL Alerts for both the RUSSELL and REAL ESTATE. The markets are now predominantly SHORT, with only Financials yet to sound an Alert for the trend change. Looking at the charts, I still believe the precious metals look like a group due for a rally. It should be an interesting week all around.
The 30 min chart shows the primary count that seems to assume some sort of compromise fiscal cliff announcement. According to this count, the double zig zag has become a triple zig zag. It would appear there is still more work to the downside needed (this seems to also be confirmed by the NYMO, see lower) to complete the correction and wave [ii] at around the 1396 target I established for [ii] a week or so ago. Below is my NYMO chart. As I’ve noted numerous times, I don’t just use the Bollinger Bands as the lone barrier for the NYMO; I use two additional barriers to track trend changes. The BB and one other barrier were breached mid-week, yet the upper barrier wasn’t even close to being threatened. Then over the following couple of days, 2 of the 3 barriers remained breached, while the top barrier is only now coming within reach. More downside tomorrow could finally bring the NYMO into a situation in which all 3 barriers have been breached. This would be a significant development as it would create a 100% accurate buy signal going back over 10 years. To find out whether the signal is on or not, subscribe or renew today, next post January 1, 2013!