Trading the Line

S/T BUY Signal at 4160

Market shrugs off yesterday's negativity and heads quickly higher with bullish strength triggering an S/T Buy Signal at 4160 and making new all time high at 4194 before pulling back into the close.

Buy Signal active

…

Steve Rushton April 23, 2021No Comments

S&P500 daily update

Alcoraz

A slight pull-back and grinding higher in early action is met with strong selling after the capital tax increase announcement.

A Cover Signal at 4146.

Market looking increasingly vulnerable.

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 April 23, 2021No Comments

S&P500 intraday update S&P500 signal

COVER Signal at 4146

A slight pullback and grind higher to 4179 before sudden news related selling drops the market quickly to the Cover Signal line. A quick bounce but further selling through the Cover signal line into a low at 4124 before further attempts to stabilize.

A COVER Signal at 4146.

…

Steve Rushton April 22, 2021No Comments

S&P500 daily update

Opportuna

Market reverses with strength from the open, quickly moving higher and triggering an S/T Buy Signal at 4159.

Further strength into the close.

Buy Signal active.

Steve Rushton April 22, 2021No Comments

S&P500 intraday update S&P500 signal

S/T BUY Signal at 4159

Early morning bullish strength takes price quickly above yesterday afternoon's high, triggering an S/T Buy Signal at 4159.

Buy Signal active.

…

Steve Rushton April 21, 2021No Comments

S&P500 daily update

Mutina

Market continues lower, triggering a Cover Signal at 4145.

Some support found at the previous low – 4120 – for an attempt at recovery.

A Cover Signal.

Steve Rushton April 21, 2021No Comments

S&P500 intraday update S&P500 signal

COVER Signal at 4145

Market continues to decline triggering a Cover Signal at 4145, finding support at 4120 and a late afternoon attempt to recover.

A Cover Signal at 4145

…

Steve Rushton April 20, 2021No Comments

S&P500 daily update

Abruzzo

Market gaps lower, finding support at 4150.

Buy Signal continues.

Steve Rushton April 20, 2021No Comments

FREE REPORTS

Shoot the Moon

I'll shoot the moon right out of the sky
For you baby
I'll be the pennies on your eyes
For you baby
I want to take you out to the fair
Here is a red rose ribbon for your hair
I'll shoot the moon right out of the sky
For you baby
I'll shoot the moon for you

Tom Waits, I'll Shoot The Moon, 1990

…

Market at all time highs, money printing to the moon, tulip manias, inflation in commodities and assets.

What could possibly go wrong?

Save the image to your desktop to view a larger version

The market consolidated under 3950 in late March before popping up and through with the most recent S/T Buy Signal on 26 March at 3927, breaking a declining sequence and making several weeks of new all time highs.

The T volume oscillator* rose rapidly with price up through the cash build up line ** indicating a new T structure was emerging projecting initial price highs in early and mid April, possibly beyond.

Price has continued higher but the T volume oscillator has remained relatively muted and not made new highs. This is a bearish divergence and indicates profit-taking and re-cycling as price becomes increasingly exhausted and potentially unsustainable.

A slight improvement in recent days but this is flashing a warning.

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

Save the image to your desktop to view a larger version

In the weekly chart below, we can see that price continues to break upwards above the important trend line from the 2012-14 peaks. This shows extreme strength and especially during the last 2 weeks as it moves outside the range of normality (from a bollinger band perspective at least.)

Previous parabolic moves have eventually resulted in significant corrections adding to the current danger and have the potential for declines to the 'mean' or to the lower edge of the channel, or even to the beginning of the previous advance.

A move below 4000 could therefore target 3550-3600 or even lower to 3280 or thereabouts.

Save the image to your desktop to view a larger version

The monthly chart provides an interesting perspective with April already looking excessive.

The recent Large T structures could be projecting highs in August 2021 and April 2022.

BUT the Mega T structure projects an important high for April 2021 and it may be this structure that is drawing price higher and higher. Given that price seems delirious and excessive, it would be sensible at least to take this projection with some seriousness.

The Mega T structure is drawn from as far back as possible and potentially projects the final high from the 2009 low because it is drawn from the high that is above the 2009 low that is as far back in time as possible – April 1997.

Hopefully I am wrong and there other forces at play but the recent tulip mania in the stockmarket (think Gamestop, Bitcoin, Tesla, etc) also suggests that we are now seeing a bubble… and bubbles can burst.

Be prepared.

Save the image to your desktop to view a larger version

2021 continues to bring a market with a range that has become increasingly expansive since the move above 2500. With price above 4000 we can only assume that this will continue. This is a Brave New World.

–

Regardless of whether the market can continue 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 on a Buy Signal since moving above 3927 on 26 March 2021.

If you would like to learn more about using the S/T Signalling System please get in touch.

–

Steve Rushton April 19, 2021No Comments

S&P500 daily update

Epistola

Market continues higher with another pop and grind higher.

Price above the gray channel and becoming increasingly dangerous.

Buy Signal continues.

Steve Rushton April 19, 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 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