Trading the Line

Vespa

A Bear Market Warning in late May is quickly cancelled as the market rapidly recovers with a Buy Signal on 04 June seeing new all time highs before backing off at the echo high on 24 June.

Some rapid selling from the high finds support around 2915 and subsequent recovery triggers a new Buy Signal on Friday 28 June.

You can't make this stuff up.

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As we can see in the chart below with the T volume oscillator*, the 04 June recovery was accompanied by a rapid rise in the T volume oscillator up through the declining cash build-up line and this in turn describes a new T structure, activating projections from the previous highs in price and/or oscillator.

* The T volume oscillator is an indication of Buying Power within the market as a whole

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Zooming out to the weekly chart below.

Selling in May from the previous high, presumably in response to the potential of a double top, found support at the 55 week exponential moving average, a longer term pivot, and the market is now back at the previous resistance, with trend line resistance above around 3030. The rapid recovery from the May low suggests that the Large T structure centered at the December low is still active and drawing power from the declines throughout 2018. The full scale of this structure points to highs in October and November but with the potential for many bumps along the way.

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As we can see in the monthly chart the rising trend line from the 2000 high continues to be very strong resistance, but as we can see from the lower parallel trend line from the 2007 high, if this level is penetrated as the lower one was in early 2017, it could unlock significant gains.

The 10 month exponential moving average continues to be a good indicator of strength, and weakness below would be another Bear Market warning.

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2019 continues to bring some fast and furious action in the market with a range that continues to be expansive. We can only assume that this will continue. This is a Brave New World.

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Regardless of whether the market can continue higher or whether deeper lows are ahead of us, the simplicity of the proprietary price based S/T Signalling System continues to keep us on the correct side of the market, with price back above Buy Signal levels and close to all time highs.

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

Fair warning: Subscription fees have not been increased since 2017 but will be increased in August 2019. I would therefore like to encourage those considering membership to do so sooner than later.

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Be prepared for whatever is coming next, and trade with confidence:

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, please 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 June 29, 2019No Comments

S&P500 intraday update S&P500 signal

S/T BUY Signal above 2932

A Buy Signal triggered at 2935 at the open.

…

Steve Rushton June 28, 2019No Comments

S&P500 daily update

Stonewall

Stabilization within the channel sets up the possibility of a push higher.

Be prepared for whatever is coming next, and trade with confidence:

Steve Rushton June 28, 2019No Comments

S&P500 daily update

Sleeper

The cover signal continues with a pop higher, drop and grind lower.

Expect the confusing and erratic behaviour to continue for a while.

Be prepared for whatever is coming next, and trade with confidence:

Steve Rushton June 27, 2019No Comments

S&P500 daily update

Sequence

Weakness at the highs develops into strong selling and triggers a cover signal at 2928.

We will await the next signal.

Be prepared for whatever is coming next, and trade with confidence:

Steve Rushton June 26, 2019No Comments

S&P500 intraday update S&P500 signal

Cover signal at 2928

Weakness turns into strong selling triggering a Cover signal at 2928

…

Steve Rushton June 25, 2019No Comments

S&P500 daily update

Block

Consolidation at the highs and a drift slightly lower.

Be prepared for whatever is coming next, and trade with confidence:

Steve Rushton June 25, 2019No Comments

S&P500 daily update

Burn

The market processes the new high with an attempt to move higher.

An echo high is scheduled for today.

Be prepared for whatever is coming next, and trade with confidence:

Steve Rushton June 24, 2019No Comments

S&P500 daily update

Aine

The market gaps up, sells off and heads back to close at a new all time high. An impressive recovery from strong selling and in unusual territory, trading above the gray channel with strong upward momentum.

Volatility to the upside suggests more, of course, but warnings are flashing and more may not be sustainable.

Be prepared for whatever is coming next, and trade with confidence:

Steve Rushton June 21, 2019No Comments

S&P500 daily update

Litha

The market drifts until the Fed adds the required fuel for a move back to 2930.

Buy Signal continues.

Be prepared for whatever is coming next, and trade with confidence:

Steve Rushton June 20, 2019No 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 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.
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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.”
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