Steve Rushton, Author at Trading the Line

About Steve Rushton

Party girl’s got her shiny dress on

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.

Save the image to your desktop to view a larger version

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.

Save the image to your desktop to view a larger version

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.

Save the image to your desktop to view a larger version

–

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.

Steve Rushton December 12, 2017No Comments

S&P500 daily update

River of Silence

Only when you drink from the river of silence shall you indeed sing.
And when you have reached the mountain top, then you shall begin to climb.
And when the earth shall claim your limbs, then shall you truly dance.

– Khalil Gibran

Another gap and go day above the perceived declining resistance indicating that this move just isn't finished, not yet. This is very characteristic of each subsequent advance in this bull market.

The red T projects another high for today as some follow through and a re-attempt at the highs seems likely, followed by another projection from the large(r) T structure for later in the week.

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

Steve Rushton December 10, 2017No Comments

S&P500 daily update

Conception

A positive development as the market attempts a bounce and finds itself looking at the initial declining resistance line.

The T volume oscillator responds with positive breadth, also a good sign.

Still on a Buy Signal as the market stabilises after last weeks exuberance and this weeks reaction.

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

Steve Rushton December 8, 2017No Comments

S&P500 daily update

Pearl

Market stabilises just above the Buy Signal line.

Today is also a pulse high, with another one next week, and another arm of the large(r) T structure projecting another peak from the sequence of April and May highs also next week. I am therefore expecting choppy attempts at the declining resistance as the market adjusts to the higher prices of the new range and decides whether there is any requirement for further selling at this time.

The T volume oscillator turns neutral. This area is a good place for a bounce and should that occur we might expect a recover attempt back at the highs. Failure to bounce here would set up a potential move down to the breakout area.

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

Steve Rushton December 7, 2017No Comments

S&P500 daily update

St Nicholas

The festive season starts with St Nicholas and the market appears to have found strong declining resistance to price above the recent outsized move. Presumably some adjustment and consolidation is required to absorb the price discovery, perhaps prior to Santa's annual visit with his reindeer.

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

Steve Rushton December 6, 2017No Comments

S&P500 daily update

Desiderantes

Many persons of both sexes, unmindful of their own salvation and straying from the Catholic Faith, have abandoned themselves to devils […] whereby they outrage the Divine Majesty and are a cause of scandal and danger to very many […] the abominations and enormities in question remain unpunished not without open danger to the souls of many and peril of eternal damnation.

Summis desiderantes affectibus, a papal bull issued by Pope Innocent VIII, on 5 December, 1484, gave explicit papal approval for the torture of women accused of witchcraft.

(Thankfully we don't live in that World anymore)

–

And so the market pops up dramatically to a new all time high which is found to be unsustainable and initiates a sell sequence into the close. That looks and feels just like an echo high and so I'm assuming that the echo high scheduled for today came in a day early. It could also be a continuation of the selling initiated at the arm of the large T structure marked in blue projecting a peak for 01 December.

The market is of course super-overextended relative to its averages and this means that it is susceptible to some strong selling. And so, although the Buy signal remains in play we should be prepared for more volatile days ahead whilst the market comes to terms with its new extended upper range.

Momentum still looks very strong, as does the breadth, whilst some indications are more bearish. Mixed signals means more volatility.

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

Steve Rushton December 5, 2017No Comments

S&P500 daily update

Something Wild

A wild, wild day at the races, as the market takes a plunge back down to the breakout area and returns to settle back well above the Buy signal line.

Last week showed us that there is turbulence in the marketplace and that price is starting to press some buttons – sell programs / hedging to lock in significant profits / targets acheived for the year, those kind of things.

If the volatility continues, and I think that it will, we should have some more extraordinary opportunities in December for profit-taking. As we can see the range has expanded considerably and we can expect the market to bounce around within this vast new range, initially marked by the recent high and low at 2605-2657 but perhaps opening out to 2575 – 2700 in the weeks to come.

The fun and games continue today with the Futures market playing catch me if you can – and trading significantly higher in pre-market.

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

Steve Rushton December 3, 2017No Comments

S&P500 intraday update

NO COVER

A wild day, but that might have been to be expected considering the extraordinary week, and I suspect that we may see more next week with the current range expanding.

So, still on a BUY signal and the cover stop will move up a little. We should continue to expect lots of volatility and should therefore trade with that in mind.

Have a lovely weekend, and keep safe.

Steve Rushton December 1, 2017No Comments

S&P500 daily update

Outsize

Technically a measured move – large up day, doji pause, and then same again, but really…?

A huge recent move up that must be playing havoc with many institutional traders (and leaving many others behind) because it is so far beyond expectations that alarm bells must be sounding across both sides of the fence. Expect more volatile days ahead for those reasons alone.

This recent activity reinforces the need for a price based system like trading the line, how else can one accommodate such extraordinarly behaviour in the markets? Still on a Buy Signal (since 2583) but the stop is a long way behind. Be sure to lock in profits as we continue in the days to come.

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

Steve Rushton December 1, 2017No Comments

S&P500 daily update

Crystal Blaze

A peak followed by some mild profit-taking in line with the pulse high and in keeping with the small gray T structure. Note that the market is attracted to the long term rising line from the Election low (still) – marked in orange. Note also that the market is repeatedly pushing upwards through previous resistance lines and this suggests to me that the market has a higher objective, and I think that this is previous long term trend lines, see the weekly chart in the free reports.

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

Steve Rushton November 30, 2017No Comments

“Simplicity is the ultimate sophistication.”
Leonardo da Vinci

“Imagination is more important than knowledge”
Albert Einstein

“All of our days are numbered. We can not afford to be idle. To act on a bad idea is better than to not act at all because the worth of the idea never becomes apparent until you do it. Sometimes this idea can be the smallest thing in the world; a little flame that you hunch over and cup with your hand and pray will not be extinguished by all the storm that howls about it. If you can hold on to that flame, great things can be constructed around it; things that are massive and powerful and world changing. All held up by the tiniest of ideas.”
Nick Cave, 20,000 days on Earth

2026 Positions

(All numbers refer to SPX)

S/T SELL Signal below 7422 on 23 June

COVER Signal below 7452 at 7365 on 23 June

S/T BUY Signal at 7500 on 18 June

COVER Short Signal at 7500 on 18 June

S/T SELL Signal at 7424 on 17 June

COVER Signal at 7454 on 17 June

S/T BUY Signal at 7404 on 11 June

COVER Short Signal at 7337 on 10 June

S/T SELL Signal at 7462 on 05 June

COVER Signal at 7553 on 05 June

S/T BUY Signal at 7586 on 04 June

COVER Signal at 7554 on 03 June

S/T BUY Signal at 7413 on 20 May

COVER Signal at 7411 on 15 May

S/T BUY Signal at 6457 on 31 Mar

COVER Short Signal above 6398 on 31 Mar

S/T SELL Signal at 6543 on 26 Mar

S/T BUY Signal above 6600 at 6620 on 25 Mar

COVER Short Signal above 6567 on 25 Mar

S/T SELL Signal below 6554 on 24 Mar

COVER Short Signal above 6581 on 24 Mar

S/T SELL Signal below 6554 on 24 Mar

COVER Short Signal above 6581 on 24 Mar

S/T SELL Signal below 6554 on 24 Mar

COVER Signal at 6590 on 23 Mar

S/T BUY Signal at 6623 on 23 Mar

COVER Short Signal above 6563 at 6600 on 23 Mar

S/T SELL Signal at 6666 on 18 Mar

COVER Signal at 6693 on 18 Mar

S/T BUY Signal at 6729 on 16 Mar

COVER Short Signal above 6668 at 6698 on 16 Mar

S/T SELL Signal at 6756 on 11 Mar

S/T BUY Signal above 6826 on 10 Mar

COVER Short Signal above 6792 on 10 Mar

S/T SELL Signal at 6765 on 10 Mar

COVER Short Signal above 6772 on 09 Mar

S/T SELL Signal below 6810 on 06 Mar

COVER Short Signal above 6822 on 05 Mar

S/T SELL Signal below 6822 on 05 Mar

COVER Signal below 6849 on 05 Mar

S/T BUY Signal at 6882 on 04 Mar

COVER Short Signal above 6849 on 04 Mar

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

More Recommended

Reminiscences of a Stock Operator: Annotated Edition

by Jon D. Markman

With new commentary and Insights on the life and times of Jesse Livermore Reminiscences of a Stock Operator is the fictionalized biography of perhaps the most famous financial speculator of all time–Jesse Livermore. This annotated edition bridges the gap between Edwin Lefevre′s fictionalized account of Livermore′s life and the actual, historical events, places, and people that populate the book. It also describes the variety of trading approaches Livermore used throughout his life and analyzes his psychological development as a trader and the lessons gained through hard experiences.

“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.”
George Orwell

“There was a student... just the other day... who said that my problem, if one's nature is a problem, rather than just problematic, is that I see things in terms of victory or death, and not just victory but total victory. And it's true: I always have. It's either victory, or don't bother. The only thing worth doing is the impossible. Everything else is gray. You're born... as a man... with the nerves of a soldier, the apprehension of an angel, to lift a phrase, but there is no use for it. Here? Where's the use for it? You're set up to be a philosopher or a king or Shakespeare, and this is all they give you? This? Twenty- odd years of school which is all instruction in how to be ordinary... or they'll fucking kill you, they fucking will, and then it's a career, which is not the same thing as existence... I want unlimited things. I want everything. A real love. A real house. A real thing to do... every day. I'd rather die if I don't get it.”
The Gambler (2014), Dir. Rupert Wyatt