Steve Rushton, Author at Trading the Line

About Steve Rushton

Trump card

Nice very short term bounce but no Buy Signal (yet)

Friday's action was a great example of why the S/T Buy level is somewhat above the market during declines – and why I think at below that level the buying is very speculative and for aggressive traders only.

We can see that the market did not get above 2100 and resumed its selling into the close, indicating that the market has a 'Risk-Off' Attitude.

We are currently sitting at the 200 day moving average – the line in the sand – and 9 days down in a row.

To receive further analysis and updated daily Buy / Sell levels being generated by the system before the market opens, please Sign up for Alerts & Observations

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 & 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.

Steve Rushton November 7, 2016No Comments

FREE REPORTS

Echo Low or Waterfall

The market has moved out of the stalemate associated with the end of the large pink T structure (pushing down) and the final weeks of the red 'Brexit' T structure (pushing up), and resolved to the downside.

I thought it would be interesting to look at the bigger picture and discuss 'double' bottoms.

Terry Laundry suggested that a double bottom resolves into one large T structure with the 2 major lows combining forces. We place the centre-post or vertical line of the T half-way between the 2 lows, and then draw the left-hand side of the T from the price peak to the centre-post, and this projects the end of the T.

We can see this clearly in the first double bottom of late August- September 2015.

Terry Laundry also pointed out that if you draw the T from the second low this will often project a price low instead of a peak – an Echo Low. (Marked in gray).

Moving on to the more recent 'double' bottom we have some complications. The oscillator shows that there is a cluster of 'lows' prior to the first price low and this is why I have drawn the major T structure in pink. However it is also possible to consider the T structure from a double bottom perspective and this projected to the early October breakdown in the market.

If we draw the T for the second low in gray we can see that at the end of the T the market was already moving downwards – into a low? And notice that the 2 previous arms of the gray T point to, or near to, lows

And so the question is: Are we entering an Echo Low or the beginning of a longer protracted decline?

If this is an Echo Low then we should see some stabilisation over the next few days, perhaps a panic low, in response to the Election and then a Buy Signal.

Of course nothing is ever certain, and there is a possible alternative view – that the Final price low in February 2016 is a single low not a double bottom, in which case we may be looking at longer bearish phase associated with the end of a major T structure.

This is why I use price to confirm the signals and not opinion. Price will get you into the market and ensure that you are not trading against it for very long.

Be prepared.

For more detailed analysis and ongoing analysis of the developments in the S&P500 index on a daily basis, please Sign up for daily Alerts & Observations

Steve Rushton November 5, 2016No Comments

S&P500 daily update

Gunpowder

“Remember remember the fifth of November
Gunpowder, treason and plot.
I see no reason why gunpowder, treason
Should ever be forgot…”

― Guy Fawkes

Lots of good reasons for a bounce here… , and a possible rally back into resistance, but a break lower is certainly possible.
And still plenty of time left for fireworks and depth charges associated with the election.

Significant risk indicated by SKEW

To receive further analysis and updated daily Buy / Sell levels being generated by the system before the market opens, please Sign up for Alerts & Observations

Steve Rushton November 4, 2016No Comments

S&P500 intraday update

Continuation of Selling

Today's intraday advice to subscribers:

After stabilising for the morning, the push lower thru 2195 has triggered a continuation with the selling.
The risk is that the market rapidly turns up now.
Target 2083.

–

Well, that was close enough for rock and roll, close.
If we don't bounce here we are going much lower.

Steve Rushton November 3, 2016No Comments

S&P500 daily update

Just because

Continuation Sell Signal at 2107 yesterday with target of at least the prior low which was acheived.

The 2pm bounce prompted a cover signal (just in case), but the short term Sell Signal remains active.

The market is ready to bounce at a moments notice, with several indicators flashing green, but I still think we will touch the lower rising Gann line currently at 2083 sooner or later.

Moving into or towards a low…

To receive further analysis and updated daily Buy / Sell levels being generated by the system before the market opens, please Sign up for Alerts & Observations

Steve Rushton November 3, 2016No Comments

S&P500 daily update

All Souls

Market starting to factor in the possibility of a trump card next week, which is something I've been thinking might have been discounted (a bit like Brexit was). And that might really rattle the markets…

Anyway a short-term target was acheived with the trip down to 2100 and it was sensible place to take some profits.
I'm still eyeing 2180-85 for a more sustainable low and significant bull market support.

To receive further analysis and updated daily Buy / Sell levels being generated by the system before the market opens, please Sign up for Alerts & Observations

Steve Rushton November 2, 2016No Comments

S&P500 intraday update S&P500 signal

Break of horizontal

Breakdown and initial target at 2105 acheived.
Covered in anticipation of a short term bounce.

Steve Rushton November 1, 2016No Comments

S&P500 daily update

All saints drift

Not much trickery yesterday, but holding onto horizontal support as we drift sideways and downwards

Osc 5,35 oscillator turns negative, T volume oscillator rises slightly.

Still looking for a final low in this drift and thinking that we may need a visit to the lower rising Gann support line, currently in the 2080s.

Also noting that there are 2 cycle or pulse highs projected for approx 9 and 15 November.

To receive further analysis and updated daily Buy / Sell levels being generated by the system before the market opens, please Sign up for Alerts & Observations

Steve Rushton November 1, 2016No Comments

S&P500 daily update

All Hallows’ Eve

Market turns down into the end of last week, in-line with the T structure associated with the September 14 low which has a bearish formation of lower highs.

I'm assuming that the expiration of the larger red T structure associated with the Brexit low is pushing this one down and will do so until a clear 'low' is in place for a new T structure.

And now at a triple low, Does the market want to play Trick or Treat ?

To receive further analysis and updated daily Buy / Sell levels being generated by the system before the market opens, please Sign up for Alerts & Observations

Steve Rushton October 30, 2016No Comments

S&P500 daily update

Tentatively short

Market possibly breaking down but wouldn't be surprised to see it it pop back up into the resistance line.

Market continuing to correct in time rather than price.

Looks like the real correction has been going on in long bonds.

To receive further analysis and updated daily Buy / Sell levels being generated by the system before the market opens, please Sign up for Alerts & Observations

Steve Rushton October 28, 2016No 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 BUY Signal at 7413 on 30 July

...

S/T SELL Signal active below 7462 st 7440 on 26 July

COVER Signal below 7522 at 7440 on 17 July

S/T BUY Signal at 7398 on 29 June

S/T SELL Signal active below 7344 on 26 June

COVER Short Signal above 7361 on 25 June

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