Steve Rushton, Author at Trading the Line

About Steve Rushton

S/T Sell Signal at 2457

The Echo high provides a little fuel and confirms my suspicions that we saw a kiss good-bye of an important rising trend line yesterday.

Further failure at the 55 ema cancels the possible new T at last week's low and brings the possibility of a visit to the lower reaches of the channel as we look for a larger structure to form in the days or weeks to come.

Steve Rushton August 17, 2017No Comments

S&P500 daily update

Verneuil

An attempt to move higher is rejected at 2475 as the market finds declining resistance from the recent highs and meets the important rising line from the Election low – a kiss good-bye perhaps?

Still above the Buy Signal line but today is an Echo high which could add some fuel to any further selling.

Some improvements in the oscillators but not yet out of the woods.

Be prepared for whatever comes next:

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 August 17, 2017No Comments

FREE REPORTS

Trump vs Kim

There are two problems for our species' survival – nuclear war and environmental catastrophe – and we're hurtling towards them. Knowingly.

– Noam Chomsky

Time for an update on the S&P 500.

In my last report I posed the question – was it time to rollover and die, or was it time for a summer rally? The answer came quickly and on 12 July the market gapped up above descending resistance on a clear Buy signal.

A good summer rally was had, and after several momentum and breadth warnings we had the exhaustion move to 2492 on the 8 August. I had been warning my readers of an expected peak in the early August timeframe but then someone mentioned missiles and we had the quick panic selloff last week.

As you can see several of the recent T structures pointed to a possible August peak including the very large Double Bottom structure centred inbetween the 2 major lows of early 2016. (Top in purple)

The panic took the market straight down to the important 55 day exponential moving average, and this is an important inflection point and has been the site of many important recent lows.

The subsequent bounce has made a small T which looks to be confirmed today and projects a high in late August.

Interestingly the 2nd low of the large Double Bottom T structure projects a series of Echo lows (marked in pale blue) and, if correct, this suggests another important low coming up also in the late August timeframe.

The weekly chart above shows the full potential range of the long range Double Bottom structure of early 2016. It now looks nearly complete. As you can see the market has been tackling the long term resistance lines that I have drawn from the March and September 2000 tops. I believe that because the market has moved upwards through these lines it has set up a significant move higher. I suspect that it may be similar to the June 2014 breakthrough, which wasn't straight up but followed a process of re-testing the previous significant low and building a platform. Perhaps 2350 and/or 2320-30 will become significant at future lows prior to the next major advance?

In the meantime it looks like the next important peak will be in the week of 25 August, with perhaps another significant peak in the week of 22 September. How much of a pullback is required first, and whether to expect higher or lower highs is unclear, and is dependent upon what happens next.

Beyond this it seems likely that we will need to see some type of corrective action that should set up another large T structure. Notice the momentum slowing on the oscillator has previously led to some significant corrections.

Perhaps Trump vs Kim after all.

Be prepared for what is coming next:

For more detailed ongoing analysis of the developments in the S&P500 index on a daily basis, as well as my personal Buy and Sell Signal trigger levels, please Sign up for daily Alerts & Observations. This includes access to the Members Area for an archive of all of my alerts and updates and my Explanatory Notes pdf which gives detailed explanations on all of the concepts being discussed.

Steve Rushton August 16, 2017No Comments

S&P500 daily update

Peterloo

Still on a Buy Signal, but finding some resistance at the declining angle from the recent highs.

The final arm of the Large T structure centred at the 17 May low expires, and this could produce another wave of selling.

IF not we have a small T which isn't confirmed by the oscillator (yet) but projects highs next week and/or prior to the labor day holiday.

Be prepared for whatever comes next:

Steve Rushton August 16, 2017No Comments

S&P500 daily update

India

A strong bounce through the Buy Signal level on a gap and go day and finding some resistance at the level where last week's selling started.

Not out of the woods yet – the possible small T looks good into late August, whereas the larger T structures are potentially projecting a peak here.

The Short alert is removed for now but we are only just above the warning level.

Be prepared for whatever comes next:

Steve Rushton August 15, 2017No Comments

S&P500 intraday update S&P500 signal

S/T Buy Signal at 2462

Market playing catch-up quick in early trade.

This is potentially strong resistance, but a close above 2462 is an S/T Buy Signal.

Steve Rushton August 15, 2017No Comments

S&P500 daily update

Macbeth

Fair is foul, and foul is fair:
Hover through the fog and filthy air.

– William Shakespeare, Macbeth, c.1605

An attempt at a recovery at the important 55 ema, but showing some lack of conviction into the weekend.

IF the market stabilises and holds Thursday's low then we have the possibility of a small T projecting into 24 and 31 August.

IF not, the 55 ema is a key inflection point, and so a visit to the lower reaches of the gray channel and even the lower extreme channel become more likely, and this will in turn ultimately produce a larger T structure for the next recovery.

Be prepared for whatever comes next:

Steve Rushton August 12, 2017No Comments

S&P500 daily update S&P500 signal

Exodus

A decisive breakdown at the echo high and penultimate arm of the most recent Large T structures suggests that these structures are now complete and we should look for a new low to form a new T structure, as the market retreats from the recent all time high.

Interestingly, this breakdown also violates the long-standing rising support line from the Election low as well as the important 55 ema, suggesting that the whole Trump rally is now complete and that we may need to see some sideways and downwards corrective action, perhaps into the Fall, before the bull resumes its search for higher prices.

Of course an oversold bounce is still quite likely, and several indicators are at readings associated with short term lows.

Watch the T volume oscillator for signs of bullish divergence with price for hints of a recovery in the days or weeks to come.

Be prepared for whatever comes next:

Steve Rushton August 11, 2017No Comments

S&P500 intraday update S&P500 signal

S/T Sell Signal at 2460

Rapid drop at the open activates a Sell Signal at 2460.

Steve Rushton August 10, 2017No Comments

S&P500 daily update

Magellan

A strong bounce off the important rising line at the penultimate arm of the current large T structure, but further deterioration in the oscillators suggests some distribution is occurring.
An echo high is scheduled for today.

Be prepared for whatever comes next:

Steve Rushton August 10, 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 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

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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