S&P500 daily update

May the Force be with you

Market found support just above the rising line from the 13 April low and closed back within its recent range near the highs.
Still on a Buy signal and within character.

The oscillators appear to be moving lower now hinting that we may need to see some further downside before resolving to the upside.

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, 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 May 4, 2017No Comments

S&P500 daily update

The Third of May

Holding steady on a quiet day, and waiting for direction.
Price pinned close to the highs, waiting for the next phase of the T structure, or the echo high to take effect.
OSc flattening off, and T volume oscillator neutral.

Be prepared for whatever comes next:

Steve Rushton May 3, 2017No Comments

S&P500 daily update

Dos de Mayo

A gentle strike at resistance in 'holiday' trade on the echo high.
Still trapped below the long term resistance line but poised to take on the high.

Be prepared for whatever comes next:

Steve Rushton May 2, 2017No Comments

S&P500 daily update

May Day

Shall I compare thee to a summer's day?
Thou art more lovely and more temperate:
Rough winds do shake the darling buds of May,
And summer's lease hath all too short a date:
Sometime too hot the eye of heaven shines,
And often is his gold complexion dimm'd;
And every fair from fair sometime declines,
By chance or nature's changing course untrimm'd;
But thy eternal summer shall not fade
Nor lose possession of that fair thou owest;
Nor shall Death brag thou wander'st in his shade,
When in eternal lines to time thou growest:
So long as men can breathe or eyes can see,
So long lives this and this gives life to thee.

– William Shakespeare (Sonnet 18)

May Day, May Day…

A cry for help, or a traditional spring festival.

A day of steady but consistent selling (or profit-taking) as the market decides not to advance upon the high, just yet.

The T volume oscillator turns negative and we should keep one eye on this, as that is a potential sell warning signal.
SKEW advances higher indicating the continued prescence of event risk.

The market seems slightly hesitant about moving higher, and so a gentle pullback may be needed first, but so long as we hold onto the rising line from the recent low, and stay above the Mid-channel, it would seem to be just a matter of time before advancing beyond 2400 – it is a bull market.

Be prepared for whatever comes next:

Steve Rushton April 29, 2017No Comments

S&P500 daily update

Orpheus

Orpheus with his lute made trees,
And the mountain tops that freeze,
Bow themselves when he did sing:
To his music plants and flowers
Ever sprung; as sun and showers
There had made a lasting spring.
Every thing that heard him play,
Even the billows of the sea,
Hung their heads, and then lay by.
In sweet music is such art,
Killing care and grief of heart
Fall asleep, or hearing, die.

– William Shakespeare (from Henry VIII)

Some consolidation at the recent high as the market pauses for contemplation of a breakout (or not).
Nothing here to see, move along now…

Be prepared for whatever comes next:

Steve Rushton April 28, 2017No Comments

S&P500 daily update

Rosa d’Abril

A push higher within pennies of the all time high is met with stiff horizontal resistance, and above the 2 important rising lines, as the market loses some of its power (for now) and looks to take a well earned pause in its climb back.

Yesterday we reached the end of an arm of the amalgamation T, and today we reach an arm of the New T structure, and so a pause for consolidation or pull-back would be likely. Perhaps another test of resistance at 2398 first.

If we do see a retracement, watch for support before a decision is made about higher prices.

Of course, strength above 2400 will push directly higher into the echo high scheduled for 1st May.

Be prepared for whatever comes next:

Steve Rushton April 27, 2017No Comments

S&P500 daily update

Aldobrandesca

Another gap and a push higher into the long term 'resistance' line at 2392.

The strength of this week's move has taken the T volume oscillator up through a long cash-build up line – at least back to the previous all time high – and so we can draw a new large T structure from the most recent low on April 13. Initial strength projects the first arm this week and projects further strength into mid and late May.

The amalgamation T structure centred inbetween the 2 lows also projects initial highs for yesterday and further strength into May. The prescence of the 2 oscillator lows prior to the price lows may have some further influence, but had been 'warning' of the bullish nature of the market throughout the recent correction.

Be prepared for whatever comes next:

Steve Rushton April 26, 2017No Comments

S&P500 daily update

A crush on you

The market pops up on the French election news, and holds steady for the day, well above the Buy Signal level.

Volatility as measured by the VIX is crushed.

The small T centred on the most recent low projected its first arm for yesterday, as does the possible amalgamation T structure (red), and so some kind of pause or pullback here would make sense – perhaps a quick spike down into the 60s.

The market found support at 2369 yesterday and so below this we may see some selling in the next few days.

Be prepared for whatever comes next:

Steve Rushton April 25, 2017No Comments

S&P500 daily update S&P500 signal

Troy

Do not trust the horse, Trojans.
Whatever it is, I fear the Greeks even when they bring gifts.
– Virgil, in the Aeneid (c. 29 – 19 BC), II, 4

Market backs away from the Buy Signal on Thursday and it will need re-confirming as the choppy recent nature of the market returns to add yet another layer of resistance.

The T volume oscillator fails at the zero line (again), but the Osc oscillator appears to be in recovery.

SKEW heads higher to extreme levels, reflecting the perceived event risk to markets, financials and currency related to the French election etc

Expect a volatile week ahead.

—

Futures currently indicating a very strong start to the week and a huge move up well above the Buy Signal level, looking like we will be negotiating the resistance levels in the 2370s, 2380s and 2390s. The small T drawn at the most recent low gives strength for a high today, and an extension into the 27th.

How the market deals with today's expected 'pop' will be quite revealing.

Be prepared for whatever comes next:

Steve Rushton April 23, 2017No Comments

S&P500 daily update

Freeze it

“That's why we seize the moment try to freeze it and own it, squeeze it and hold it.”
– Eminem

A short term Buy Signal as the squeeze and triangle pattern resolves to the upside, and at least for now, there is an attempt to move out of the descending channel.

Of course stiffer resistance lies above in the 2360s and 2370s, so this may be a short term move.

The T volume oscillator recovers back just above zero and continues to show bullish divergence in breadth.

The small collapsing T with the oscillator low at the 21 March drop and price low on 27 March expires today and this could present a high in the market. Further strength into May could be attributed to an amalgamation of the recent lows in price and oscillator but that remains to be seen.

Be prepared for whatever comes next:

Steve Rushton April 21, 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 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