Trading the Line

Franck-Hertz

A re-test of the important 2683 level is rejected but the market finds some support at the previous low at 2660.

Market still very much responding to the declining angles, selling into strength, but looking for value at lower prices.

The Mid channel starts to turn up, and this could provide some support in the days to come.

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

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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 24, 2018No Comments

S&P500 intraday update

George and the Dragon

I will not cease from Mental Fight,
Nor shall my Sword sleep in my hand:
Till we have built Jerusalem,
In Englands green and pleasant Land.

William Blake, Jerusalem, 1804

–

On Thursday the market showed support at 2380 and on Friday it gave way, triggering a 'Cover' signal as the market looks lower and there is more work to be done.

Strong penetration of this level (the 55 ema) again is a reminder of the previous weaknesses that led to the recent lows – on 05 February, 01 March and 19 March – and certainly brings with it the possibility of another deep(er) low ahead perhaps another re-test of the important 2530s support level, perhaps somewhat lower in due course.

A rapid recovery would signal a different series of events and perhaps another attempt at 2750+.

Lines in the sand…

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

Steve Rushton April 22, 2018No Comments

S&P500 intraday update S&P500 signal

Cover Signal at 2681

Market triggered a Cover Signal at 2681, dropped hard into the 2660s with a short covering rally into the close for good measure.

We shall await the next signal.

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

Steve Rushton April 20, 2018No Comments

S&P500 daily update

April expiration

A weak open and selling down into last week's gap and a bounce at 2682.

A re-test of the rising trend or the beginning of another leg down?

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

Steve Rushton April 20, 2018No Comments

S&P500 daily update

Lisbon

Depending upon exactly how you draw the declining line connecting the previous two major price highs, we could ask the question: Are we there yet?

To recap, on 02 April the market penetrated the lower extreme of the channel for (only) the second time this year and this initiated another fast recovery with some signs of bullish divergence such as a higher low in the oscillators.
On the 06 April another flush downwards – a re-test of the lows – was bought strongly and the market has rapidly moved up through each level of price resistance since then.

On 10 April movement up above the S/T channel triggered a strong Buy Signal which is still active.

From a T Theory perspective, we can draw a T structure that projects the next price high. The left side of the 'T' starts at the tweezer tops on 12 and 13 March (where the most recent decline started from) and is centred at the low (where the decline end). The selling pressure during the decline is the fuel for the advance and produces a force that is equal in time – the right side of the 'T' – and therefore projects into 19 and 20 April. We do not know how high the force will drive the market but we know that the next highs(s) should be within the next two days.

Of course, there are additional declines that may produce further 'waves' and there is a double bottom structure emerging that could power the market higher, but what happens next will be critical.

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

Steve Rushton April 19, 2018No Comments

S&P500 daily update

In Vegas

In Vegas, everybody's gotta watch everybody else. Since the players are looking to beat the casino, the dealers are watching the players. The box men are watching the dealers. The floor men are watching the box men. The pit bosses are watching the floor men. The shift bosses are watching the pit bosses. The casino manager is watching the shift bosses. I'm watching the casino manager. And the eye-in-the-sky is watching us all

Casino, 1995, Dir: Martin Scorsese

–

A very positive development as the market leaps higher and closes firmly above the important 55 ema and major pivot. Very much on a Buy signal, and certainly a bit extended with the next negotiation being the declining resistance lines and channel lines just above.

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

Steve Rushton April 18, 2018No Comments

S&P500 daily update

Cochinos

Another gap up, holds up above the open and makes an attempt on 2687. Technically an improvement as the market comes up into what may be strong resistance above.

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

Steve Rushton April 17, 2018No Comments

S&P500 daily update

Mutuality

“Injustice anywhere is a threat to justice everywhere. We are caught in an inescapable network of mutuality, tied in a single garment of destiny. Whatever affects one directly, affects all indirectly.”

Martin Luther King Jr., Letter from the Birmingham Jail, 1963

–

Market gap up open at 2580 proves too much, too soon, and the market consequently sells down into 2652.

A weakened market then struggles at 2668 before an afternoon swoon to 2645 before finding some strength into the close at 2656.

The market identifies an important level to be negotiated moving forward, as the 55 ema is a major pivot and as above is below or vice versa. Rejection here means that more work is required, with of course the possibility of another leg down.

Still holding up above the Buy signal level, with a rising short-term movement meeting a longer term declining trend. Push and pull.

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

Steve Rushton April 16, 2018No Comments

S&P500 daily update

Bound Brook

Another gap up and push to 2674 and the market closes back above the Mid-channel for the first time since 16 March – a very positive development.

Very much on a Buy signal but still characterised by spikes into 'resistance'.

Next negotiation is the declining line from the recent high and the major pivot of the 55 ema.

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

Steve Rushton April 13, 2018No Comments

S&P500 daily update

Ground control

Though I'm past one hundred thousand miles
I'm feeling very still
And I think my spaceship knows which way to go
Tell my wife I love her very much she knows
Ground Control to Major Tom
Your circuit's dead, there's something wrong
Can you hear me, Major Tom?

David Bowie, Space Oddity, 1969

–

Another one of those days, opened down, went up, and then came back down again – its becoming a signature of this recent market.

Struggling at the moment with the downward pressure from the Mid-channel and declining resistance lines.

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

Steve Rushton April 12, 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 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.”
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“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 our prior and subsequent ghost.
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The mind is a stone door.
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