Posts by Steve Rushton

Yesterday's high becomes today's low as the market stretches higher with barely a pullback in sight. This is catch up quick behaviour as the market proceeds higher without hanging around waiting for the bystanders, and is, I suspect, playing noodles with those insisting on selling short because 'we must have reached a top'.

We may find some resistance here – on the rising line from the 1 March peak – but really there is no fundamental reason why the market should stop here, and the upper extreme* reaches of the channel are now looking very attractive. Note that the February move into the 1 March peak was a 100 point near vertical move into the upper extreme* of the channel where it stopped.

In the meantime we have a projection for a high today from the large T structure, but this is just the first in a series of several that I am projecting from the June declines. This suggests a continued grind higher with perhaps a few pauses or pullbacks until we see a point of exhaustion or an important target is acheived.

*The upper & lower extremes of the channel are my approximation of Terry Laundry's proprietary Energy channel.
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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.

 

Please, release me, let me go,
For I don't love you anymore.
To waste our lives would be a sin,
Release me and let me love again.

– Dominic Miller / Gordon Sumner, 1949

6 days straight up, is there some more? (…probably)

Today is the first of a series of scheduled pulse highs and tomorrow is another arm of the T structure with further peaks projected in the weeks ahead.

A pause hereabouts would help to release some of the pressure, but all indicators are pointing up.

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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.

 

If I could stay, then the night would give you up.
Stay, and the day would keep its trust.
Stay, and the night would be enough.

Faraway, so close
Up with the static and the radio.
With satellite television
You can go anywhere:
Miami, New Orleans
London, Belfast and Berlin.

– U2, Stay (Faraway, so close), 1993

Another high as the bull continues to raise its horns and advance.

All indications pointing up, and now looking similar to the February move which was a 5 day 50 point straight up break outside the bollingers type move and was followed by as much again into the eventual peak. Just a thought and for a possible comparison but that would place the upper extreme of the channel – 2580-2600 – well within range.

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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.

Zooropa… better by design
Zooropa… fly the friendly skies
Through appliance of science
We've got that ring of confidence…

And I have no compass
And I have no map
And I have no reasons
No reasons to get back

And I have no religion
And I don't know what's what
And I don't know the limit
The limit of what we've got

– U2, Zooropa, 1993

The market continues to climb towards the upper extreme range of the channel, now in-line with the rising line from March 15.

Although rather overstretched now, the oscillators are suggesting further.

… and over in Zooropa, Germany celebrates its re-unification with the Dax up an impressive 7% in the last month.

I mention the Dax because it helps to contextualise this advance which many seem to be in disbelief of. It seems likely that many traders were incorrectly positioned after the August peaks and expected to see some further lows in September and October. The continued bearish chatter and disbelief in this bull market will almost certainly continue to fuel higher prices as more and more traders are forced to cover short positions and this in itself could propel the market to further significantly higher levels.

Remember that I have pointed out that the market was starting to break through some extremely long resistance lines on the weekly chart – in the recent Free Report. Lines that originate from previous bull markets tops. It seems that we are progressing through these levels and it now seems that 2400 to 2500 may be long term support levels moving forward. At the same time the market started to activate the very long cash build up line – potentially setting up a much larger T structure. We may need to get used to the idea that the market was previously rather 'cheap' and now it is 'less cheap', rather than over-priced.

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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.

 

Carefully watch your thoughts, for they become your words.
Manage and watch your words, for they will become your actions.
Consider and judge your actions, for they have become your habits.
Acknowledge and watch your habits, for they shall become your values.
Understand and embrace your values, for they become your destiny.
– Mahatma Gandhi

A push to new all time highs on an echo high at the end of the quarter.

The echo high may of course initiate some selling or profit-taking but the market looks strong and the T structure continues to look larger with further projections in October.

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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

 

Just one step at a time,
And closer to destiny.
I knew at a glance,
There would always be a chance for me.
With someone I could live for;
Nowhere I would rather be.

Is your love strong enough,
Like a rock in the sea?
Am I asking too much?
Is your love strong enough?
– Bryan Ferry, Is your love strong enough?, 1994

Another strong day, and a new all time high.

Another echo high is scheduled for today with the possibility of some strong selling at the end of the quarter.

And then the next negotiations are a selection of pulse highs scheduled for early to mid October.

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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

 

 

An echo high – gap up, sell off and rally to new all time highs – something for everyone.
Large T structure very much alive.

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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

 

Here we go again
Playing the fool again
Here we go again
Acting hard again, all right!
Well I'm beginning to see the light
– The Velvet Underground, Beginning to See the Light, 1969

A gap up into the declining resistance but finds some support.
Just marking out the range for now.

Price continues to flash a warning, momentum is slowing and today is a scheduled echo high.

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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

 

The market continues to define a slight retracement channel with a successful test of 2488 and recovers back above the Buy Signal line into the close.

Momentum slowing and price flashes a warning.

 

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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