S&P500 signal - Trading the Line

Cover Signal at 4500

A huge gap lower overnight finding initial support at 4515 for an attempt to recover into 4541 before persistent selling. A choppy stabilization phase above 4506 during the middle session is unable to hold onto any gains and strong selling continues through the Cover Signal line with a brief look back at 4506 touching 4472 just prior to the close.

Positive earnings from Amazon take the market higher after the close.

Cover Signal at 4500

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Steve Rushton February 3, 2022No Comments

S&P500 intraday update S&P500 signal

S/T BUY SIgnal at 4391

Heavy selling at the open into a low at 4300 is met with strong buying up into a morning high at 4386 followed by a choppy early afternoon and a rapid decline to 4337.

Late afternoon strength and a surge in the last half hour push up through the Buy Signal line at 4391.

Very volatile price action – difficult market conditions continue.

S/T BUY Signal active.

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Steve Rushton January 28, 2022No Comments

S&P500 intraday update S&P500 signal

S/T SELL Signal at 4682

A gap higher and a look at 4744 is quickly met with strong selling, dropping to 4710 for a bounce back to 4728 and challenging the Buy Signal. Stronger selling and a flush lower to 4686 triggering a Cover Signal at 4700 is met with a bounce back to 4705 before yet more selling drops the market through the Sell Signal line at 4682.

Sell Signal active – hedge accordingly

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Steve Rushton January 13, 2022No Comments

S&P500 signal

S/T Buy Signal at 4712

Sharp selling from the open is met with buying at 4640, and a re-test of 4640 is met with very strong buying taking the market up through the Cover Short Signal line at 4688 and eventually touching the Buy Signal line just prior to the close, with a last minute push higher into the close.

An S/T Buy Signal at 4712

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Steve Rushton January 11, 2022No Comments

S&P500 intraday update S&P500 signal

S/T SELL Signal below 4702

Another very choppy session with strong buying and strong selling and rapid reversals in price.

Initial buying is met with strong selling triggering a Sell Signal below 4702 but is met with strong buying from 4677 up into a session high at 4724 before dropping back into the close.

A Sell Signal at 4702 but market attempting to recover – hedge accordingly.

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Steve Rushton January 6, 2022No Comments

S&P500 intraday update S&P500 signal

S/T BUY Signal at 4638

A huge overnight move up and some strong selling from the open is met with persistent buying from 4585.

A Cover Short Signal at 4614 and an S/T Buy Signal at 4638.

Buy Signal active.

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Steve Rushton December 21, 2021No Comments

S&P500 intraday update S&P500 signal

S/T SELL Signal at 4638

An extremely volatile day with a gap down below the Cover Signal and into a Sell Signal at 4638.

Strong buying off the lows cancelled the Sell Signal at breakeven with the push higher into 4666 briefly re-activating a Buy Signal above 4661.

Strong selling from the highs re-activating the Sell Signal and a weak but volatile close

Sell Signal active

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Steve Rushton December 17, 2021No Comments

S&P500 intraday update S&P500 signal

S/T Buy Signal at 4581

Some very choppy action at the open with initial selling quickly bought with strength and a powerful morning move up into the area of the S/T Buy Signal at 4581.

More very choppy action before a strong move higher into 4600, topping out at 4610 and then declining into a choppy close.

Buy Signal at 4581

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Steve Rushton December 6, 2021No Comments

S&P500 intraday update S&P500 signal

Cover Signal at 4578

Some very strong buying and a very volatile and choppy session. A push up through the Cover Short Signal line at 4578 and chopping about above 4578 and with a look at 4595 before dropping sharply into the close.

A strong recovery but closing at the Sell Signal line – either Hedge or Cover – I shall consider it to be a Cover Signal.

Very challenging market conditions.

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Steve Rushton December 2, 2021No Comments

S&P500 intraday update S&P500 signal

S/T SELL Signal at 4632

A gap down into the area of a Sell Signal (4632) is met with some strong buying into 4645 before heavy selling and a fast move down.

Sell Signal active

Steve Rushton December 1, 2021No 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 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.

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“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