S&P500 signal - Trading the Line

Trump Tower

On Election day the market noses into the resistance line at 2144, and stops to wait for the result.

We had a short term cycle/pulse high scheduled for 8-9 November which suggested that the market might sell the news at least temporarily.

Oops, futures down very hard on the news of Donald Trump's successful night, triggering a SELL Signal, but have recovered significantly showing that the market was well protected. Initially E-minis bounced at 2028 which corresponds to about 2032 on the S&P500 index – the lower extreme boundary – fine green line on my charts. Keep an eye on that level for future reference as it is now major support and the market may need to go have a look-see at some point.

Watch to see if the previous low at 2083 holds, or not, as the market digests the news and traders re-position. Very large open option positions at 2050 and 2000 may be initial magnets and strong support but the unloading of these positions could also be the tail-wind for a strong recovery. (ie Sell the News and Buy the recovery)

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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 & 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 9, 2016No Comments

S&P500 intraday update S&P500 signal

S/T BUY Signal at the open

Sometimes the market bounces and fails and then the real bounce starts the next day, with avengeance.

The market roars its approval of Hillary and breezes through resistance and up into the mid-channel area.

A new small T is activated, and we can see that if this breaks through the downward sloping resistance, we have the possibility for a larger T structure and a rally into Christmas and the New Year.

Its just politics, stupid

Steve Rushton November 7, 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 intraday update S&P500 signal

S/T Sell at 2136

Tentative short signal at 2136 in flip flop market.

More tomorrow.

Steve Rushton October 27, 2016No Comments

S&P500 daily update S&P500 signal

Cat’s paw

Nice bounce at horizontal support.
Covered at 2128, and speculative buying only above 2130.
Short signal still in place after breakdown through important rising lines but perhaps there is more in this bounce first, strong resistance at 2140 now.

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Steve Rushton October 14, 2016No Comments

S&P500 intraday update S&P500 signal

Continuation Short Signal at the open

Movement below the recent support level, and resumption of short signal

Steve Rushton October 13, 2016No Comments

S&P500 intraday update S&P500 signal

Sell Signal at 2149

Short term Sell Signal from 2149.

Steve Rushton October 11, 2016No Comments

S&P500 daily update S&P500 signal

Short Term Buy above 2163 but still in triangle

Early bullish start to the day triggered a short-term Buy Signal but as we can see the consequent pullback remains consistent with the recent triangular and descending resistance.

Given the benefit of doubt due to the potentially bullish nature of the end arms of the large red T and recent small blue T, but looks like we may still be suffering from the see-saw day-trading environment.

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Steve Rushton October 11, 2016No Comments

S&P500 daily update S&P500 signal

S/T Sell Signal at 2151

A Short Signal from 2151 occurring with the market dropping out of the recent triangle, and looking like its right on time with a cycle high scheduled for tomorrow, and the recent expiration of major arm of the red T structure.

Maybe targetting support lines at 2130 or 2120.

More tomorrow.

Steve Rushton October 4, 2016No Comments

S&P500 signal

Triangle time

Triangle in play and hit expected resistance at 2172-5 with profit-taking.

Recovery of the T volume oscillator suggesting that there is the possibility of short-term strength into the early part of the week with another short-term high scheduled for October 4-5.

Choppy day-traders market likely to continue until direction resolved.

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Steve Rushton October 1, 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 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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“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