The Alphahorn Portfolio remains predominantly in cash. More than likely we’ll see an immediate term pullback per the wave count options described below. But, we could see a bit of slow crawl up still before this first leg up off the December lows concludes. So, we’re keeping our powder dry and will use it when a clear entry presents itself.
The wave count remains on schedule. The bullish blue count is that intermediate wave (1) of [5] has concluded and now (2) is underway. Minor wave a of (2) looks to be finished and now a small bounce in b is underway. I am looking for (2) to conclude just below 2600 SPX. The bearish red count should mirror the blue count for some time until either the blue count pushes on to new highs or the red count takes out the December 2018 lows. While there is a chance that primary wave [B] has completed, I favor the scenario that merely the (A) leg is complete and (B) is underway. This will keep both the bulls and bears hopeful a bit longer. (Note: there is a small chance that this small pullback is minor wave 4 and we’ll another push up to complete either (1) or (A). Until, the immediate term becomes more clear, we’ll stay predominantly in cash).
