As the Alphahorn Swing System has slowly pulled out of trades as signs grow for an intermediate term top, the returns to date for 2013 continue to escalate now approaching an incredible 60% for the year. If we were ranked against the top hedge funds in the country, then we’d be in a virtual tie for the top spot (see most current rankings from Zerohedge.com). The Alphahorn Swing System continues into next week where we left it. SPX and the Nasdaq in cash, see the Nasdaq chart for the short entry level. The Real Estate long trade (which I made due a promising long set up) continues to disappoint and I would expect an immediate, impulsive move up if the bullish count is going to carry the day. This weakness for the often leading Real Estate index does not bode well for the other equity indexes. The precious metals are showing weakness with a bearish head and shoulders recently confirmed on GLD. Adding to the signs for a potential top, observe how the SPX and Nasdaq are approaching their respective upper red barriers.
I haven’t shown the SPX daily Renko chart in some time. But, it’s giving reason for a return to the limelight. There a couple of indicators on the chart that have been accurate leading indicators. First, look at the green ADX line above just above the Renko. Negative divergence on this indicator has marked a top and it is present once again. Same with the indicator just below the Renko. Negative divergence typically builds on this indicator as it has at the moment. There are increasing indications to be cautious mounting. Moving to the EW counts, the bearish count has primary wave  topping . As I’ve noted, both the Nasdaq and SPX are testing their upper channel trend lines that have contained the bull market off the March 2009 low. The bullish count is shown on the DOW chart. The DOW unlike the SPX and Nasdaq, still have ample room to the upside for primary wave  to continue to melt upward well into 2014. It will be an interesting several weeks ahead, stay tuned!