Weekend Update

The Nasdaq closed strongly above its red/green indicator and confirmed a buy/long Signal at the close on Friday.  Look for the DOW and Financials to follow suit early this week.  WEAT and WFT also had strong days on Friday and are close to confirming buy/long Signals (although the Portfolio has maintained its WTF holding through the sell/short Signal).  I will look to re-enter WEAT and CORN and will post should the Portfolio make those trades.

The favorite wave count is that minor wave 3 of intermediate wave (5) of primary wave [5] is subdividing into a 1,2,[i],[ii],(i),(ii),i,ii start.  This sets up a quite impulsive set of third waves that should propel the SPX to a new all time high over the coming weeks.  Should the SPX fall and make a lower low, then the alternative count would be a larger triangle for intermediate wave (4) that is still ongoing.  This appears to be a diminishing possibility after the strong day on Friday.The daily chart shows the negative divergence that is building between price and indicators.  I suspect we’ll see a double top form with the SPX testing 3000 and negative divergence that points to a significant market top in the coming month or so.The weekly chart also shows the negative divergence.  A Puetz crash window is approaching.  The next (and really better/stronger) Puetz crash window is a year from now should this bull market extend.

About alphahorn

I received an MBA from Columbia University’s Graduate School of Business in New York and am a Wall Street veteran. I’ve worked for a number of investment banks including Smith Barney and First Boston/C S First Boston in New York. Over the years, I have developed my own Proprietary Swing System and I combine that System with my own Elliott Wave Analysis to trade.
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