Steve Rushton, Author at Trading the Line

About Steve Rushton

S&P500 daily update S&P500 signal

Jefferson

“I'm a greater believer in luck, and I find the harder I work the more I have of it”
– Thomas Jefferson

An S/T Sell Signal below 2350 as gravity takes hold.

More fun again with the market breaking down in early trade and then bouncing off 2341, in a failed repeat rally.

Late afternoon confirmed the jittery feel to the day but 2342 was heavily defended into the close.

Be prepared for whatever comes next:

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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.

Steve Rushton April 13, 2017No Comments

S&P500 daily update

Columbia

Vix Volatility spikes higher on the pink moon and the market quickly sells off to the 55 ema for (only) its 2nd test since November.

A Sell Signal, yes, but cancelled in afternoon trade.

Market recovers, and closes back almost unscathed within the chopshop zone, with just a little extra help at the close.

A double dose of an echo high yesterday and a pulse high today,
and the T volume oscillator turns positive.

Fine entertainment – we should expect more fun today.

Be prepared for whatever comes next:

Steve Rushton April 11, 2017No Comments

S&P500 daily update

On the range

Oh, give me a home where the Buffalo roam
Where the Deer and the Antelope play;
Where seldom is heard a discouraging word,
And the sky is not cloudy all day.
Home, home on the range…

– Dr. Brewster Higley (1872)

Market very much trapped within the chopshop range, and yet another failed Buy Signal sold into.
Buy at the bottom of the channel and sell at the top until proven otherwise.
Vix moves up significantly. The oscillators improve a little.

Be prepared for whatever comes next:

Steve Rushton April 11, 2017No Comments

S&P500 daily update

Apprehension

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…

– The Gambler, 2014, Dir: Rupert Wyatt

Market desperately trying to hold onto rising support from the March 27 low and slip sliding into the close. The pattern of failed attempts at higher prices continues.

We also now have a series of projected highs for early next week along with the end of the Alt Cluster T Structure, and the current small T looking weak.

The T volume oscillator fails yet again to climb above zero, and the OSC oscillator rolls over and makes a Sell Signal.

Be prepared for whatever comes next:

Steve Rushton April 9, 2017No Comments

FREE REPORTS

From a Lion’s roar

Since the 01 March high in the S&Ps, we have seen a series of lower highs, and lower lows with strong bounces that have been sold into – marking out a defined downward channel.

So far the selling has been relatively mild, in comparison to previous corrective periods, but more and more it seems that the market is at an inflection point, and the obvious question is: is about to get unpleasant?

Lets have a look at the bigger picture:

The market has been trying to hold onto some strong rising support lines, whilst at the same time acknowledging a descending resistance line and this produces a triangulation. Triangulations are squeezes – direction uncertain.

We could make comparisons with the September 16 period, or alternatively with the May 16 period. It seems quite usual for the market to test a descending resistance line 3 or 4 times before making a firm decision whether to break it or rollover.

The very large T structure which still seems to be dominant – from the January-February 2016 double bottom projected a series of price highs from right back to the November and December 2014 highs to the recent highs. Before the November 2014 highs, the previous low was at a comparative level to the 2016 lows and so this T structure should be complete now. This could well explain the current lack of buying power in the market and could certainly produce some lower lows in the near future, as the market looks to re-charge itself.

The same T structure also projects an Echo low in the April 19-22 period, which remains to be seen.

We can also see that the buying surge at the Election low has produced a long line of shallow lower highs in the oscillator which we can describe as a cash-build up line, marked in green. When we get a buying surge that cuts through this line, we can draw the next large T structure. Of course, we may need to go down first in order to get the bounce required to break up through this cash build up.

We watch the oscillator for clues, but we use price as the leading indicator.

Be prepared for what is coming next.

For more detailed ongoing analysis of the developments in the S&P500 index on a daily basis, please Sign up for daily Alerts & Observations – includes access to Members Area and Explanatory Notes.

Steve Rushton April 8, 2017No Comments

S&P500 daily update

On reflection

“Meditation on inevitable death should be performed daily.
Every day when one’s body and mind are at peace, one should meditate upon being ripped apart by arrows, rifles, spears and swords, being carried away by surging waves, being thrown into the midst of a great fire, being struck by lightning, being shaken to death by a great earthquake, falling from thousand-foot cliffs, dying of disease or committing seppuku at the death of one’s master.
And every day without fail one should consider himself as dead”

– Yamamoto Tsunetomo, Hagakure: The Book of the Samurai

Holding onto support on the rising angle, trying to make a Buy Signal but selling into that strength again.
Very much within the chopshop zone oscillating between support and resistance, and on reflection waiting for the next catalyst.

The market continues to wind and coil in a strong triangulation pattern building a significant squeeze which when released will produce a dramatic movement (either up or down) and although the momentum (and risk) at the moment seems negative, the T volume oscillator is still hinting at a positive outcome.

Be prepared for whatever comes next:

Steve Rushton April 7, 2017No Comments

S&P500 daily update

To a thunder clap

An S/T Buy Signal at the gap up open and straight into the strong descending resistance line at 2376.

The 2pm FED related panic move down, cancels that signal out and places a nervous market at rising support and if we are moving lower, we are back on a Sell Signal.

Dangerous market conditions.

Be prepared for whatever comes next:

Steve Rushton April 6, 2017No Comments

S&P500 daily update

From a rainstorm

“There is something to be learned from a rainstorm.
When meeting with a sudden shower, you try not to get wet and run quickly along the road.
But doing such things as passing under the eaves of houses, you still get wet.
When you are resolved from the beginning, you will not be perplexed, though you will still get the same soaking.
This understanding extends to everything.”

– Yamamoto Tsunetomo, Hagakure: The Book of the Samurai

Testing the Short Signal level once again but still within the chopshop zone and acting accordingly.

So long as the recent low holds we might expect to see some kind of grind away higher towards the descending resistance within the right-hand side of the small T structure.

Be prepared for whatever comes next:

Steve Rushton April 5, 2017No Comments

S&P500 daily update S&P500 signal

April Fool indeed

A Sell Signal generated in early trade but support found at 2345 – just above the rising angle from the most recent low – and a recovery into the afternoon cancelled out the Sell Signal, for now.

We are very much within the dangerous chopshop zone – where Sell Signals become Buy Signals and vice versa – and we should expect more chop in the days to come until the market makes a strong exit one way or another.

The T volume oscillator turns negative, flashing a warning signal, and weakening the current small T.

Be prepared for whatever comes next:

Steve Rushton April 3, 2017No Comments

S&P500 daily update

April Fool

Market finds repeated resistance at 2370 and equivalence at the Mid-channel.

Too much stability here leads to choppy days ahead as the balance of forces become too equal.

Be prepared for whatever comes next:

Steve Rushton April 1, 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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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