Lucia

Steve Rushton December 11, 2021No Comments

All numbers refer to SPX

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Some very strong buying since making lows around 4500 on 01 and 03 December quickly taking the market back to the all time highs.

A new Buy Signal at 4581 on 06 December and a new active T structure.

Should we expect further highs?

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Very strong and intimidating price action intermixed with some sharp selling as the market muscles its way higher.

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The T volume oscillator ¹ started to deteriorate after 09 November and especially after 17 November, in-line with previous projections for a high giving some warning of the subsequent selling. Having made a low with the heavy selling on 01 December, the oscillator then made a Buy Signal on 06 and 07 December with a strong move up through the declining cash build up line² of the oscillator indicating the potential for a large T structure emerging

The oscillator projects strength from the previous oscillator highs into the next series of highs via the oscillator lows, and the price highs also project strength from the previous price highs into the next series of price highs via the price lows. The T structures project the current highs with potential into the Christmas holiday and possibly beyong into New Year.

¹ The T volume oscillator is an indication of Buying Power within the market as a whole
² The cash build-up line is a declining line drawn above a series of lower highs made in the oscillator.

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The weekly chart shows a strong recovery from the weekly 21 ema back to the high forming a new small T which projects strength into the week ending 24 December – also in-line with the small T at the previous low.

If the large T structure is still larger, we can project the next major highs for the week ending 07 January, with the possibility of longer projections into early April and mid-late May 2022.

The rising line under the recent lows is an important support line, and a significant break of that area would be a serious warning.

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The monthly chart continues to show strength with a strong recovery from last months spike high. The previous high was in-line with the projection for a high from the large T Structure centered at the March 2020 low, which continues to project highs into March and May of 2022.

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2021 continues with a range that has become increasingly expansive since the move above 2500. With price above 4500 we can only assume that this will continue. This is a Brave New World and we should trade accordingly.

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Regardless of whether the market can continue higher or whether significant lows are ahead of us, the simplicity of the proprietary price based S/T Signalling System will continue to keep us on the correct side of the market, with price currently back on a Buy Signal since moving above 4581 on 06 December 2021.

If you would like to learn more about using the S/T Signalling System please get in touch.

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Be prepared for what 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 as well as the new 'Notes on Daytrading' which provides insight into how to look for shorter term entries and exits within the context of the S/T Signalling System.

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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