Steve Rushton, Author at Trading the Line

About Steve Rushton

S&P500 intraday update S&P500 signal

Buying above 2292

Early morning strength seems to be confirmed so far, so we have an S/T Buy Signal at 2292 this morning.

Maybe we have a few days of strength.

Tight trailing stop and hedge accordingly.

Steve Rushton February 3, 2017No Comments

S&P500 daily update

Libra

“There's always more to it.
This is what history consists of.
It is the sum total of the things they aren't telling us.”
– Don DeLillo, Libra (1988)

Market sits at a perfect 10 and ready for a squeeze – balanced at the 10 day ema in a tight triangle with the averages compressing. Hmm what gives? Expect some volatility soon.

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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 February 3, 2017No Comments

S&P500 daily update

Pop n Drop

As suspected the market ran from Sell trigger level to Buy trigger level at 2288 and reversed at the descending resistance line.
This is Chopshop behaviour and occurs when the balance of forces are too equal and the market is in the Mid-channel area
This may continue for a while but ultimately a volatile exit will occur because this sets up a squeeze.

Yesterday another arm of the large T structure expired adding credence to a peak, and the OSC oscillator gives up its recent strength.

And at the moment 2288 looks like a gap close and good bye to the island above.
Damage done.

It won't take much to push this vulnerable market over now.

Steve Rushton February 2, 2017No Comments

S&P500 daily update

Holding on

I know what this is…
I have seen one before, many many years ago.
It belonged to a man in a half-remembered dream.
A man possessed of some radical notion.

Inception (2010), Dir. Christopher Nolan

Another short-covering rally off the important 2268 level, and back in the chopshop.
Another important arm of the T structure expires today, and the beginnings of a descending resistance line forming.
But holding onto the short term rising support line, for now.

Steve Rushton February 1, 2017No Comments

S&P500 daily update

Waiting for a Train

I'll tell you a riddle.
You're waiting for a train…
A train that will take you far away. ..
You know where you hope this train will take you…
but you don't know for sure…
But it doesn't matter.
How can it not matter to you where that train will take you?
… Because you'll be together.

Inception (2010), Dir. Christopher Nolan

Cover Signal yesterday due to the move below 2283, and now we await the next Signal.
Strong short-covering rally off the short term support line, but the market has been significantly weakened.

Steve Rushton January 31, 2017No Comments

S&P500 intraday update S&P500 signal

Cover at 2083

No Sell Signal today but failure to recover back beyond 2083 is a cover Signal.
Although the market did rally into the close significant damage was done today and so we await the next signal.

Steve Rushton January 30, 2017No Comments

S&P500 intraday update

Echo high indeed

A lovely start to the week with a drop down to potential support at 2274, inline with the Echo High and a gap down lower suggesting that we did see the end of the major arm of the T structure

Watch out for a short term bounce here, but at the moment those highs look a bit lonely like an island reversal.

Steve Rushton January 30, 2017No Comments

FREE REPORTS

Are we there yet?

A good question and one that many will be asking as the Dow finds itself above 20k and the S&Ps near 2300.
And so now is a good time to check the major T structure.

As you can see there was an expectation to move into a peak around the 24-25 January but because of the choppy behaviour in mid January and the movement through and below the important rising gann line from the low, it seemed a long time coming and uncertain.

Looking at the previous bull run off the 'Brexit' low a similar thing happened just after the major arm (from the previous major peak) of the T structure expired. On that occasion, the market attempted to recover and then subsequently collapsed. A kiss good bye of the rising line, if you will.

Unfortunately the T volume oscillator seems to be struggling at a similar juncture, leading me to think that we may be about to see a similar pattern of behaviour, and further weakness in price and/or the oscillator would give that more credence.

Of course we still have a final projection for the T structure for late February and the oscillator drop from the peak (at +80) is steep and linear, indicating consistent selling at that time. That would suggest a linear move into the late February peak.

Whether we get a significant drop here or not remains to be seen, and that will determine whether the final peak is a higher high or a lower high.

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

Be prepared for whatever comes 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 January 29, 2017No Comments

S&P500 daily update

Echo high?

Battle to hold 2295 as market takes a little bit of a breather, and looking like we are close to another major turn on (or near to) the Echo high.

Steve Rushton January 28, 2017No Comments

S&P500 daily update

Pause to digest

“… how important it is in life not necessarily to be strong but to feel strong,
to measure yourself at least once, to find yourself at least once…”
– Primo Levi

A pause to digest the recent move to new highs and make a decision whether to continue higher or to re-visit the previous range first.
Strong resistance just above and scheduled highs to negociate.

Steve Rushton January 27, 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