Party girl’s got her shiny dress on

Steve Rushton December 12, 2017No Comments

Welcome to the Trading the Line Free Report.

Party girl's got her shiny dress on
Look at those party moves
She's lookin' for a good time

She loves to dance and she loves the action
Wherever the party goes
She's lookin' for a good time

You're never gonna see a tear in her eye
Never see her break a frown
She's lookin' for a good time

The way she dances makes my world stand still
And she's spinning in the sky
Every move is like a psychedelic pill
From a doctor I can't buy.

– Neil Young & Crazy Horse, Psychedelic Pill, 2012

–

No looking back as the market grinds higher with another strong close at another new all time closing high. Strength in the T volume oscillator supports the continued advance.

Yesterday was in-line with a projection for a high from the red T structure, we have a pulse high scheduled for Wednesday and another peak projected by the large(r) blue T structure for Thursday.

Seasonal strength continues, and its difficult to see anything upsetting the strong upside momentum at least into the holiday period and the New Year. That of course maybe a pyschological target for many investors.

Keep one eye on the Osc oscillator which is gently declining, and allow the T volume oscillator to keep us informed of the under-current behind the market.

–

Apologies for the lack of special reports this Fall. I have been relocating, never easy but now complete.

So, shortly after the last report, we had a shallow pullback – a one day sell signal characteristic of this year – and the market rocked higher with its standard gap and go / catch me if you can type move – again characteristic of this year, paused briefly at 2600 and then shot up into the recent explosive peak which we are currently re-testing.

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As you can see in the chart below, the T volume oscillator was in decline throughout the majority of the advance in October from 2500 to 2600. In T Theory terms this is called a cash-build up and is graphically defined by the line of lower highs in the oscillator marked in pale green. This is in effect profit-taking whilst the market continues to climb higher. You can see that the oscillator moves upwards through the cash-build up line just after the 15 November low. This defines that low as an important turning point and the market starts to use the cash-build up that goes back to the previous oscillator high – a new T structure has been formed.

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Zooming out to the bigger picture on a weekly chart. As you can see the market has been playing catch up and accelerating higher towards the upper reaches of a defined channel since the 2016 lows. I believe that the current target may well be the previous trajectory – the long term rising trend line from the 2014 and 2015 peaks.

Interestingly, the quick sell off after the 01 December explosive high is in-line with the possible peak projection drawn from the super long range double bottom T structure. The bigger structures can have significant effect at their end points, like a tsunami cruising through the ocean almost unoticeably until it reaches its destination shore. Another projection should occur just before the Christmas break and this is easily accommodated by the short term structures which are also pointing to peaks at this time.

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–

I wish all of my subscribers and my readers a very special and warmest Winter Greeting as we celebrate the shortest day at the Solstice and the festival of Christmas, and the turning of the Old Year into the New Year.

—

Be prepared for whatever is coming next, and trade with confidence:

To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the Trading the Line system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes for all of the concepts discussed.

Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.

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2026 Positions

(All numbers refer to SPX)

S/T SELL Signal below 6845 on 03 Mar

COVER Short Signal above 6877 on 02 Mar

S/T SELL Signal below 6850 on 02 Mar

COVER Short Signal above 6857 on 27 Feb

S/T SELL Signal at 6857 on 27 Feb

COVER Signal below 6884 at 6857 on 27 Feb

S/T BUY Signal at 6884 on 23 Feb

COVER Short Signal at 6850 on 23 Feb

S/T SELL Signal at 6837 on 23 Feb

COVER Signal at 6864 on 23 Feb

S/T BUY Signal at 6883 on 18 Feb

COVER Short Signal at 6834 on 17 Feb

S/T SELL Signal at 6888 on 12 Feb

COVER Signal at 6915 on 12 Feb

S/T BUY Signal at 6899 on 06 Feb

COVER Short Signal at 6938 on 06 Feb

S/T SELL Signal at 6901 on 04 Feb

COVER Short Signal at 6915 on 03 Feb

S/T SELL Signal at 6915 on 03 Feb

COVER Signal at 6942 on 03 Feb

S/T BUY Signal at 6968 on 02 Feb

COVER Short Signal at 6938 on 30 Jan

S/T SELL Signal at 6910 on 30 Jan

COVER Signal at 6940 on 30 Jan

S/T BUY Signal at 6934 on 29 Jan

S/T SELL Signal at 6907 on 29 Jan

COVER Signal at 6934 on 29 Jan

S/T BUY Signal above 6905 at 6923 on 22 Jan

COVER Signal at 6849 on 21 Jan

S/T SELL Signal below 6894 at 6843 on 20 Jan

COVER Signal below 6925 at 6843 on 20 Jan

S/T BUY Signal at 6961 on 15 Jan

COVER Signal below 6934 at 6925 on 14 Jan

S/T BUY Signal above 6890 at 6900 on 05 Jan

COVER Short Signal at 6864 on 02 Jan

S/T SELL Signal at 6837 on 02 Jan

Mission

It has been my Mission to create a simple but effective method for investing in the stock market, so that I would always know what to do regardless of the circumstances.

The result is a rigorous system which allows the market to tell you what to do, when to Buy, when to Hold, when to Cover, and when to Sell, and it removes the need for you to have any opinion whatsoever.

And so, I present to you the diary of my personal trading system, and a record of the signals that it is producing. You are welcome to follow me along but please understand that the information posted here is for entertainment purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.

Please sign up for my occasional FREE REPORTS and if you would like to find out more and receive my email alerts and more detailed observations, please SIGN UP HERE

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“In the end, I’m not interested in that which I fully understand. The words I have written over the years are just a veneer. There are truths that lie beneath the surface of the words... truths that rise up without warning, like the humps of a sea monster and then disappear. What performance and song is to me is finding a way to tempt the monster to the surface, to create a space, where the creature can break through what is real and what is known to us. This shimmering space where imagination and reality intersect... this is where all love and tears and joy exist. This is the place. This is where we live.”
Nick Cave 20,000 days on Earth

“If you're going to try, go all the way. Otherwise, don't even start. This could mean losing girlfriends, wives, relatives and maybe even your mind. It could mean not eating for three or four days. It could mean freezing on a park bench. It could mean jail. It could mean derision. It could mean mockery--isolation. Isolation is the gift. All the others are a test of your endurance, of how much you really want to do it. And, you'll do it, despite rejection and the worst odds. And it will be better than anything else you can imagine. If you're going to try, go all the way. There is no other feeling like that. You will be alone with the gods, and the nights will flame with fire. You will ride life straight to perfect laughter. It's the only good fight there is.”
Charles Bukowski, Factotum, 1975

>“The mind is a glass floor.
The mind is the spirit’s tear.
The mind is our prior and subsequent ghost.
The mind is the Bullion Express and the blood on the tracks.
The mind is a stone door.
The silver on the backs of mirrors.
The wave that defines the coast.
It’s what the drunk grave robbers couldn’t stuff in their sacks.
The mind is the sum of all and more.
The spasm between one and zero in the Calendar of Black-Hole Years.
The contract between the lash and the whipping post.
A quilt of dreams stitched with facts.
A meaningless argument among whores.
Rain that keeps falling when the sky clears.
A masquerade party, guest and host.
A candlelit landscape of puddled wax.
The mind is what thought is for.
The parking lot at the Mall of Fears.
The fire-pit for the piggy roast.
What the soul surrendered and won’t take back.
The mind is neither either nor or.
The real center of an empty sphere.”
Jim Dodge, Stone Junction, 1990

“The war is not meant to be won, it is meant to be continuous. Hierarchical society is only possible on the basis of poverty and ignorance. This new version is the past and no different past can ever have existed. In principle the war effort is always planned to keep society on the brink of starvation. The war is waged by the ruling group against its own subjects and its object is not the victory over either Eurasia or East Asia, but to keep the very structure of society intact.”
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The Gambler (2014), Dir. Rupert Wyatt

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