Trading the Line

Condensate

A mix of short-covering and buying interest ignites an impressive move up through the S/T Buy Signal level at 2779 taking the market firmly back above the 200 day moving average and removing the Bear market warning for now.

The T volume oscillator moves strongly up and turns positive in support of the new structure that projects strength through June, assuming, of course, that the 03 June low is not taken out.

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 5, 2019No Comments

S&P500 intraday update S&P500 signal

S/T BUY Signal at 2779

A huge gap up above the Sell Signal level of 2765 indicating that the selling may now be over.

Some stabilization before triggering an S/T Buy Signal at 2779 and a powerful move up into 2800.

Steve Rushton June 4, 2019No Comments

S&P500 daily update

Brissim

An extremely choppy day with strong selling and strong buying as the market reacts to last week's drop but defends 2730.

A strong move up in the T volume oscillator is encouraging and opens up the possibility of a recovery, and a possible new T structure under construction.

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

Steve Rushton June 4, 2019No Comments

FREE REPORTS

Under Pressure

Welcome to the Trading the Line Special Report.

The market is back under pressure as a series of gaps down and manic attempts to recover reveal the distributive nature of May and find the market back below the important 200 day moving average.

For me, that is a Bear Market Warning flashing.

Of course, a rapid recovery back above the 200 day moving average would be a very welcome sign, but in the meantime the market continues to look for stability in what looks like an increasingly unstable World.

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As we can see in the chart below with the T volume oscillator*, the market was starting to weaken from mid April – as the oscillator starts to diverge with price. The oscillator is declining below zero whilst price is making new highs.

The market was running on vapors, and it was running out of time.

The large T structure projected a high on about 16 April with a possible subsequent high on about 09-10 May but the 01 May engulfing down day was enough to signal the end of the spring advance as each subsequent attempt to move back up has been rapidly sold into.

* 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.

We can see that the market stretched up through the previous resistance levels at 2800 and 2870 into a token new high at 2950 before its completion of the Spring advance.

The weekly and monthly close below important support looks, at least for now, rather ominous.

As we can see there is important rising support in the 2690s, but much lower starts another tipping over effect, and the 'delights' of Pandora's Box below that.

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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.

The monthly close below 2780 (10 ema) is a bearish indication. Whilst strong potential support lies at the 2690 level (21 ema), further weakness would be a very ominous sign.

The next very long range projection for a high is in the September – October time frame. If the market is to recover and proceed back to new all time highs or perhaps an important lower high, we need to see some kind of recovery back above the 10 ema.

The long range oscillator continues to be in decline and is potentially warning of further trouble ahead.

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All in all, 2019 continues the dynamic range of 2018 – far beyond the experience of the previous years. We should expect price volatility and price expansion to continue and trade accordingly. This is a Brave New World.

–

Regardless of whether the market can recover or whether deeper low(s) 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 firmly below Sell Signal levels.

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

–

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

Steve Rushton June 2, 2019No Comments

S&P500 daily update

Kalka

Market at a critical juncture attempting to hold onto the 200 day moving average.

Bear market warning flashing with Futures down significantly overnight.

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

Steve Rushton May 31, 2019No Comments

S&P500 daily update

Pucelle

Sell signal still active as the market drops to the 200 day moving average and looks for some kind of support.

Entry short at or above 2782.

As usual recommend covering at or prior to the close.

Some bullish signals flashing. There may be enough actual fear in the marketplace again to put a floor under the current decline.

However with some strongly negative forces and declining lines it may take several attempts to turn this thing fully around. Caution in either direction is recommended.

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

Steve Rushton May 30, 2019No Comments

S&P500 daily update

Southernwood

The same theme as Friday: A recovery open is sold into and the market drifts back lower.

The market is unable to hang onto gains within the declining channel and repeated attempts to rally result in strong selling into the close.

Sell Signal still active and now challenging the important 2800 level again.

Note that the market has consistently sold into the dramatic bursts of buying and this is a characteristic of action below the important support levels.

In effect until the market resolves its problem with price this process of strong buying and selling will continue and the zig-zagging lower will continue. We are currently within the left-hand side of a larger structure that is under construction, and will eventually result in a new large T and a strong bullish phase.

Whilst a Sell Signal is active we will continue to watch carefully for signs of an established low and a new structure emerging.

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

Steve Rushton May 29, 2019No Comments

S&P500 daily update

Thales

A recovery open is sold into and the market drifts back lower.

Sell Signal still active.

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

Steve Rushton May 28, 2019No Comments

S&P500 daily update

Bermuda

A significant drop in pre-market futures meets strong selling at the open and a rapid move lower.

Weakness below 2835 triggers an S/T Sell Signal at 2825.

The initial bounce is sold into and the market heads for the recent low.

As usual recommend to cover short position at or prior to the close.

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

Steve Rushton May 23, 2019No Comments

S&P500 intraday update S&P500 signal

S/T SELL Signal at 2825

The market opens well below the Sell Signal line and rapidly moves to 2825 triggering a cover and Sell Signal.

…

Steve Rushton May 23, 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.”
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>“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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