Trading the Line

Kucha

A big drop overnight and a very volatile and choppy session dropping into an early afternoon low at 4572 and then recovering to 4602 before dropping back into the close.

Very volatile and erratic price action – difficult market conditions

Sell Signal active.

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 intra-day alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area, Explanatory Notes (pdf) for all of the concepts discussed, and Notes on Day Trading (pdf)

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 January 19, 2022No Comments

S&P500 daily update

Banneux

A volatile session of stabilization after Thursday's decline with a large gap lower, recovery to breakeven, dropping lower and finally recovering off the deeper low.

Sell Signal still active but signs of recovery – hedge accordingly.

Steve Rushton January 15, 2022No Comments

S&P500 daily update

Sankranti

A brief look at 4744 is met with heavy selling, bouncing temporarily at 4710 and then flushing lower challenging the Buy Signal at 4712 and triggering a Cover Signal at 4700. Further heavy selling triggering a Sell Signal below 4682.

Sell Signal active – hedge accordingly.

Steve Rushton January 14, 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

…

Steve Rushton January 13, 2022No Comments

S&P500 daily update

Knutmasso

A push higher in morning action is met with strong selling from 4747, finding support just above 4700 for a choppy remainder of the day.

Buy Signal and volatile action continues.

Steve Rushton January 13, 2022No Comments

S&P500 daily update

Mir

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

Steve Rushton January 12, 2022No Comments

S&P500 signal

S/T Buy Signal at 4712

An S/T Buy Signal at 4712

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Steve Rushton January 11, 2022No Comments

S&P500 daily update

Kagami Biraki

Heavy and persistent selling into lows at 4600, 4590 and 4584 before being met with strong buying for a recovery to last week's lows

Above 4640 indicated a more significant recovery developing and to protect short positions.

Sell Signal still active – hedge accordingly.

Steve Rushton January 11, 2022No Comments

FREE REPORTS

Rubicon

All numbers refer to SPX

…

An extreme move up into the End of Year, followed by some very heavy selling.

Welcome to 2022.

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A large DB (Double Bottom) Structure projected into 30 December and 04 January (and with potential into 13 January) collapses from the new all time high on 04 January and is heavily sold into in response to FED minutes on 05 January as traders rush for the exits.

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The T volume oscillator ¹ made strong Buy Signals after the important price lows on 03 December and 20 December, with the oscillator moving up through the declining cash build up lines² and confirming the prescence of active T Structures.

T Theory projects highs from the important price highs and the important oscillator highs with the amount of time spent declining from highs equal to that of the subsequent price rise.

Curiously, although the price has collapsed from the highs, the T volume oscillator is still positive. Either we have not seen the important low(s) yet and there is significantly lower prices ahead or the buying power remains relatively strong and recovery is imminent.

We are therefore prepared for a recovery but mindful of the potential for lower prices from this level.

¹ The T volume oscillator is an indication of Buying Power within the market as a whole
² The cash build-up line is a declining line drawn above a series of lower highs made in the oscillator.

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The weekly chart provides a bigger picture of the current Large structure centered at the March 2020 low and projecting the current high from the price peak in mid June 2018 and this would explain the current decline.

The logic of the structure would suggest further highs in early April and mid-late May of this year but with quite a bumpy ride in due course.

The bottom of the recent price rise and the rising trend line would be important levels to hold if this structure is to stay intact.

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The monthly chart shows the series of Large structures that are are still collectively projecting highs for March and/or April 2022.

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2022 starts with price dropping back from the top of a range that has become increasingly expansive since the move above 2500. With price moving back into the previously extremely volatile range above 4500 we can only assume that this expansive price action will continue – in both directions. This is a Brave New World and we should trade accordingly.

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With much discussion going on regarding what the FED is and has been doing, I would like to recommend John Titus' fascinating in depth presentation on his youtube channel BestEvidence: Larry & Carstens' Excellent Pandemic.

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Regardless of whether the market can move higher or whether significant lows are ahead of us, the simplicity of the proprietary price based S/T Signalling System will continue to keep us on the correct side of the market, with price currently below the Sell Signal line at 4702 since 06 January 2022.

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In 2022, I intend to launch a Mentoring Service that will complement and expand upon the Trading the Line Subscription Service. Topics will include: T Theory, Position Trading, Day Trading, Price action, and Trading Psychology, and the intention is to provide traders with the full educational support that they may need to become successful.

If you would like to learn more about the S/T Signalling System, using T Theory or would be interested in the Mentoring Service, please get in touch.

…

Steve Rushton January 8, 2022No Comments

S&P500 daily update

Tricolore

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

An S/T Sell Signal below 4702 but strong buying off the low, covering above 4702 but re-activating in late afternoon.

Sell Signal active but signs of recovery – hedge accordingly.

Steve Rushton January 7, 2022No 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 7404 on 10 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

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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