Trading the Line

Perpetua

Esto Perpetua
(May she live forever)

Paolo Sarpi, 1623

–

Selling initiated at the high on Wednesday continues triggering a cover signal at 2914 and an S/T SELL signal at 2900.

Strong buying at 2885 initiated a recovery to 2900 and in effect cancelling the Sell Signal, for now. The Mid-channel (pale blue band) providing strong initial support.

Two possibilities:

Either, yesterday was a one-day sell off and the market will now resume its grind higher. In which case we should see a close back above the S/T channel. (eg 15 August)

Or, yesterday is the beginning of a period of weakness as the market probes lower and builds a support platform. In which case the S/T channel continues to decline and provides ongoing resistance to advances until a low is in place. (eg 25 June)

Of course we cannot know for sure, and this is why we allow price to show us which scenario is most likely developing.

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 October 5, 2018No Comments

S&P500 intraday update S&P500 signal

S/T SELL Signal at 2900

Market gapped down and quickly dropped below 2914 triggering a Cover Signal followed by a Sell Signal at 2900.

The rapid bounce from 2885 back to 2900 cancels the Sell Signal for the time being and covered at 2895 to protect position.

Neutral at the close.

Steve Rushton October 5, 2018No Comments

S&P500 daily update

St Francis

We were called to the forest… when we went down.
A wind blew warm and eloquent
We were searching for the secrets of the universe…
And we rounded up demons and forced them to tell us what it all meant
We tied 'em to trees and broke them down one by one
And on a scrap of paper, they wrote these words…
And as we read them, the sun broke through the trees…
"Dread the passage of Jesus, for he will not return."

Nick Cave & The Dirty Three, Time Jesum Transeuntum Et Non Riverentum, 1996

–

Another look-see at the 2940 high and again the market backs-off with selling accelerating into the close.

A pulse high.

Technically still above the Buy Signal line but the market continues to display declining resistance from the high(s).

Futures are significantly lower this morning and threatening the current Buy Signal.

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

Steve Rushton October 4, 2018No Comments

S&P500 daily update

Unit

Zooropa… better by design
Zooropa… fly the friendly skies
Through appliance of science
We've got that ring of confidence…

And I have no compass
And I have no map
And I have no reasons
No reasons to get back

U2, Zooropa, 1993

–

Another attempt to move higher is sold into in the afternoon, but the market remains above the Buy signal level and close to all time highs.

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

Steve Rushton October 3, 2018No Comments

S&P500 daily update S&P500 signal

Twilight

A gap up above the Buy Signal level and head for the recent highs triggers another Buy signal at the open. The market continues to follow the recent script and having taken a look-see at 2937 finds profit-taking again, intensifying in afternoon action.

The market closed just above the Buy Signal line but it seems that we still have significant downward pressure from the recent price high.

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

Steve Rushton October 2, 2018No Comments

S&P500 daily update

Oktober

Another reconnaissance, an attempt at the Buy Signal level and just touched before backing off.

We need to see a close above the Buy Signal level to initiate a move beyond the all time high.

Still, the market is holding up above key price levels, for now.

Osc oscillator confirms a sell signal and this either suggests that the next move will not be significantly higher or that there is downward pressure developing.

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

Steve Rushton September 30, 2018No Comments

S&P500 daily update

Reconnaissance

And I follow, follow, follow,
The Gypsy Faerie Queen,
We exist, exist, exist, exist,
in the twilight in-between.

Marianne Faithfull, The Gypsy Faerie Queen feat. Nick Cave, 2018

–

A tale of two halves with the market heading higher in morning trade to trigger an S/T Buy Signal at 2920, but finding declining resistance in afternoon trade and backing right off, cancelling the signal for the time being.

Still very much within the declining environment since last Friday's reversal at 2940, but holding up above key levels, for now.

Cover signal continues.

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

Steve Rushton September 28, 2018No Comments

S&P500 daily update S&P500 signal

Banana

There she goes
There she goes again
Racing through' my brain
And I just can't contain
This feelin' that remains

The Velvet Underground, There She Goes Again, 1967
Songwriter: Lou Reed

–

Well, the Fed speaks and the market reacts providing traders with the brief opportunity to sell in the vicinity of the recent all time high, followed by a rapid descent which triggered a 'cover' signal at 2909.

At the very least we should now expect some kind of stabilisation phase as the market looks to find support, with the possibility of further selling.

Yesterday's action suggests to me that the current T structures may be complete, and that a corrective phase may now be necessary.

The rapid drop in the T volume oscillator since the high on Friday morning is flashing a warning as one would normally expect to see some follow through from a thrust in the oscillator, and so, for now, last week looks like distribution at the high.

Watch the declining angles from the high, rising support lines and averages, and the oscillators for signs of stabilisation as we wait for the next signal.

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

Steve Rushton September 27, 2018No Comments

S&P500 intraday update S&P500 signal

COVER Signal at 2909

Weakness developed after the Fed announcement and the market dropped hard into the closing bell triggering a Cover Signal at 2909.
A close below 2909 confirms the Signal.

Steve Rushton September 26, 2018No Comments

S&P500 daily update

Spindrift

The market continues to grind and drift lower within the channel, waiting for the catalyst from the Fed, perhaps for some further justification for higher prices, or a reason to sell.

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

Steve Rushton September 26, 2018No 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

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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.
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