Trading the Line

Hopewell

Some signs of hesitation at the highs – in-line with the project for a Thanksgiving high, as the market shifts back into the familiar low volatile grind of previous weeks.

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 November 28, 2017No Comments

S&P500 daily update

Kiss the sky

Purple haze, all in my brain
Lately things they don't seem the same
Actin' funny, but I don't know why
Excuse me while I kiss the sky

Jimi Hendrix, Purple Haze, 1970

–

The market continues gently pushing higher through Thanksgiving week – very much in keeping with the previous advances with a gap up above a declining consolidation phase.

The Large(r) T structure points to some kind of short-term peak here (perhaps some profit-taking), but with more to come and so does the new red structure, and so we should expect some choppiness as we move into the next phase of pulse highs and an echo high.

Whether we see a pullback here, or not remains to be seen. We should be prepared for some kind of profit-taking after the recent exuberance, perhaps even a re-test of the break out. But the structures also allow for a continuation directly into December – followed by a mid December peak, a pause and then a rally into New Year.

The strong oscillators and especially the recent move in the T volume oscillator support a general move higher.

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

Steve Rushton November 26, 2017No Comments

S&P500 daily update

Black Friday

A pause after the surge on Tuesday and now we wait for the post Thanksgiving shopping binge.

The Osc oscillator responds to the recent strength with a Buy Signal.

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

Steve Rushton November 23, 2017No Comments

S&P500 daily update

Thanksgiving

The market leads into Thanksgiving in true style and price responds to the recent strength of the T volume oscillator. Those 2 new small T structures and the extensions of the larger one are very much alive.

I would like to thank all of my readers and subscribers and wish you all a very enjoyable Thanksgiving.

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

Steve Rushton November 21, 2017No Comments

S&P500 daily update

Equivalence

On 21 November, 1905, Albert Einstein publishes his famous formula for mass-energy equivalence:

E = mc²

The market lifts just a little and sits more comfortably just above equivalence.

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

Steve Rushton November 21, 2017No Comments

S&P500 daily update

Eye in the Sky

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 gentle pullback after Thursday's exuberance, acknowledging the declining resistance and with weakness into the close of November's expiration.

Still on a Buy Signal, and the apparent strength in the T volume oscillator is noticeable, activating and confirming the more recent small T structures that project strength into December. This looks like a strong T Theory buy signal.

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

Steve Rushton November 18, 2017No Comments

S&P500 daily update S&P500 signal

Mare Imbrium

A gap up open cancels out the previous Sell Signal and the strength triggers an S/T BUY Signal at 2583.

A visit to 2590 shows some resistance at a declining angle, but this is so close to the previous all time high that it would seem likely that this is temporary.

The rapid turnaround suggests to me that we are now seeing additional strength in the larger T structure and that the projections into late November and December are now active. Yesterday's rise in the T volume oscillator indicating strong breadth supports this thinking.

Yesterday was an echo high (but perhaps a lesser one) and today is a pulse high. There is therefore always the possibility of a rapid move back down due to profit-taking on yesterday's snap back to the high.

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

Steve Rushton November 17, 2017No Comments

S&P500 daily update

Tolerance

A gap down through the SELL Signal level at 2571 for a look at 2557 and a strong bounce.

No follow through above that level and so the market drifts lower into the close.

Most of the selling was pre-market and/or at the open.

This is in-line with expectations following the recent projected important high and we now find the market below the mid-channel and just below the current Sell Signal level.

The oscillators continue to show weakness in momentum and breadth and the T volume oscillator is at a level that the previous strong bounce occurred at.

An echo high is scheduled for today and so IF we get a bounce from this level, which seems quite likely, we should expect some strong selling into it, perhaps at one of the declining resistance lines, as traders that didn't get out of positions early enough lock in those prices.

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

Steve Rushton November 16, 2017No Comments

S&P500 intraday update S&P500 signal

S/T SELL Signal active below 2571

Strong selling into a weak open triggers a S/T Sell signal at 2565 in early trade.

Watch for a bounce and/or selling into any recovery from this weakness.

–

Strong bounce off the early morning low in-line with recent action.

–

No follow through above the Sell Signal level and so the system is signalling short, for now.

Obviously its quite a close call with the market hovering just below the signal line for most of the day and there has not been much selling since the open.

Market looks like its in some kind of holding or waiting mode and I am not sure that I would recommend holding a short position overnight, due to the risk of a gap up tomorrow.

Hedge accordingly.

Steve Rushton November 15, 2017No Comments

S&P500 daily update

Eastern Fast

Market continues its recent downward funk but notice that although price is deriorating each of the last 5 days closed up or significantly above the low. This doesn't look like recent previous declines into a low and is suggesting that price is very reluctant to go lower, yet.

Still on a Buy signal, just. Probably more chop and sideways action ahead but keep an eye on the declining resistance from the all time high as well as the T volume oscillator that is back near its recent low, for signs of an advance.

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

Steve Rushton November 15, 2017No 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.”
Charles Bukowski, Factotum, 1975

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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.
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.
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The mind is neither either nor or.
The real center of an empty sphere.”
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“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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