Trading the Line

Yellow haze of the sun

Well, I dreamed I saw the silver
Space ships flying
In the yellow haze of the sun,
There were children crying
And colors flying
All around the chosen ones.
All in a dream, all in a dream
The loading had begun.
They were flying Mother Nature's
Silver seed to a new home in the sun.
Flying Mother Nature's
Silver seed to a new home.

Neil Young, After the Gold Rush, 1970

–

A day of stabilisation after Monday's heavy selling.

Still below the Sell Signal level but holding up above 2710, for now.

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 March 21, 2018No Comments

S&P500 daily update S&P500 signal

Another kind of strange

Every card he drew
Had a different face
Lingering and lost
Unholy holy ghosts
I tend to play them all
He spoke with confidence
Another kind of strange
To shift in loneliness

Patti Smith, Nine, 2012

–

A weak start to the week and the market triggers an S/T Sell Signal in early trade at 2729.

Straight down into 2700.

Some buying interest at 2695 on a second bounce at a level below the amber channel helps to turn the market around in the afternoon.

Covered at 2710 on expectation of some relief to the strong selling but the Sell Signal is still active.

An Osc Sell Signal imminent.

And a pulse high today.

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

Steve Rushton March 20, 2018No Comments

S&P500 intraday update S&P500 signal

S/T SELL Signal below 2729

Another weak opening finds the market taking a look see near the Sell Signal line at 2729 in early trade.

This should've be an area of strong support and so a bounce and/ or some kind of recovery would have made sense.

Not much of a bounce within first hour or so.

S/T SELL Signal in play at 2729, stop at 2740

Steve Rushton March 19, 2018No Comments

S&P500 daily update

Sinnerman

Oh, sinnerman, where you gonna run to?
Sinnerman where you gonna run to?
Where you gonna run to?
All on that day
We got to run to the rock
Please hide me, I run to the rock
Please hide me, run to the rock
Please hide here
All on that day
But the rock cried out
I can't hide you, the rock cried out
I can't hide you, the rock cried out
I ain't gonna hide you there
All on that day
I said rock
What's the matter with you rock?
Don't you see I need you, rock?
Good Lord, Lord
All on that day
So I run to the river
It was bleedin', I run to the sea
It was bleedin', I run to the sea
It was bleedin', all on that day
So I run to the river
It was boilin', I run to the sea
It was boilin', I run to the sea
It was boilin', all on that day

Nina Simone, Sinnerman, 1965

–

A disappointing week especially after the strong close on Friday 09 March.

However, the market retained its support and for now remains in neutral.

I suspect that a lot of the action and downward pressure was due to the considerable weight of quarterly option expiration, closing and rolling over of hedges etc.

The T volume oscillator moves up, considerably, due to the high volume of buying on Friday and this would normally be associated with a significant move up in price. I am slightly suspicious of this, maybe the data is not correct.

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

Steve Rushton March 18, 2018No Comments

S&P500 intraday update

No follow through yet

The morning move the 2761 triggers a Buy signal at 2761, but this is not held and is not confirmed at the close.

The market remains relatively weak and still volatile but looks as though it is trying to make a turn.

Steve Rushton March 17, 2018No Comments

S&P500 daily update

Like the rain

Every time she goes away, I feel the pain
I feel the same, it's like the rain
Every time I hear her name, I fall apart
This is the end, why do we start?
This is the only way, you go away
Be my friend, come back again
The only way, this is the only way
The only way, the only way

Tricky, The Only Way, 2017

–

The market continues to chop around looking for support. A quick move to 2763 finds sellers and in the afternoon the decline to 2742 finds some buyers.

The market remains neutral and volatile cancelling out last week's bullish stance, at least for now.

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

Steve Rushton March 16, 2018No Comments

S&P500 daily update

Ides of March

There is a tide in the affairs of men
Which, taken at the flood, leads on to fortune;
Omitted, all the voyage of their life
Is bound in shallows and in miseries.
On such a full sea are we now afloat;
And we must take the current when it serves,
Or lose our ventures.

William Shakespeare, Julius Caesar, c. 1599

–

A third down day as the market gaps up and sells yet again, triggering a cover Signal, and although the market did try to recover from 2745 it was not sustained and the relatively weak close confirms the cover signal for now.

The result is to erase Friday's huge move up and to reinforce the declining resistance from the highs, albeit at a shallower angle.

The T volume oscillator moves just below the important zero line, turning neutral and questioning the recent drive higher.

The market is unstable, and caution is advisable.

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

Steve Rushton March 15, 2018No Comments

S&P500 intraday update S&P500 signal

COVER Signal at 2754

The market continued lower again today and triggered a Cover Signal at 2754.

Although the market bounced about in the 2740 to 2760 area this afternoon – and looked as though it may recover – the close below 2754 is a Cover Signal.

We will await the next signal.

Steve Rushton March 14, 2018No Comments

S&P500 daily update

Anthrocene

Sit down beside me and I'll name it for you
Behold, behold
The heaven bound sea
The wind cast its shadow and moves for the tree
Behold the animals and the birds and the sky entire
I hear you been out there looking for something to set on fire
The head bow children fall to their knees
Humbled in the age of the Anthrocene

Nick Cave & The Bad Seeds, Anthrocene, 2016

–

A gap up and advance into 2800 is short-lived. The subsequent profit-taking turns into persistent selling as the market looks for support.

The result is an ugly reversal day exacerbated by fears that the return of volatility will push the market back down towards the recent lows.

As the market is still above the current Buy Signal level and some key support that still remains to be seen.

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

Steve Rushton March 14, 2018No Comments

S&P500 daily update

In Amber

Some go and some stay behind
Some never move at all
Girl in amber trapped forever, spinning down the hall
Let no part of her go unremembered, clothes across the floor
Girl in amber, slumber shuts the bathroom door
The phone, the phone, the phone it rings, it rings, it rings no more
The song, the song, the song it spins since nineteen eighty-four
The phone, the phone, the phone, it rings, the phone, it rings no more
The song, the song it's been spinning now since nineteen

And if you want to bleed, just bleed
And if you want to bleed, just bleed
And if you want to bleed, don't breathe a word
Just step away and let the world spin

Nick Cave & The Bad Seeds, Girl in Amber, 2016

–

The market opened higher and quickly found resistance at 2796.

Subsequent consolidation in the 2780-90 area has probably helped to relieve some of the pressure from the recent move higher. Good to see that the market did not sell off much of Friday's move.

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

Steve Rushton March 13, 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.”
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