Trading the Line

No missile crisis yet

Nothing much but buying this morning after the overnight 'missile crisis' and so a nice strong thrust upwards from 2428.

It seems that we are still buying the dips and selling the rips.

Continue to watch the action at the important averages for evidence of a sustained move higher.

Steve Rushton August 29, 2017No Comments

S&P500 daily update S&P500 signal

First Lightning

Market closed yesterday still in Neutral / slightly Bearish Mode waiting for direction.
No strength to follow through on overnight gains, but holding onto the important 55 ema for now.

The momentum oscillator looks to be making a Buy Signal.
The T volume oscillator back just below zero – failure here is a Sell Signal.

—

On the anniversary of the soviets first atomic bomb test – First Lightning – the North Koreans fire a missile over Japanese air space. Futures are subsequently trading below the Sell Signal line but bounced from initial lows in the region of 2420. Early morning reaction and political rhetoric will likely set the stage for the day.

Be prepared for whatever comes next:

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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 August 29, 2017No Comments

S&P500 daily update

Acceptance

Sam – Whenever there is any doubt, there is no doubt. That's the first thing they teach you.
Vincent – Who taught you?
Sam – I don't remember. That's the second thing they teach you.
[…]
Vincent – No questions. No answers. That's the business we're in. You just accept it and move on. Maybe that's lesson number three.

Ronin, 1998 Dir. John Frankenheimer

—

Another attempt at a Buy Signal meets resistance at the previous high of 2454, continuing the theme of declining resistance.

The T volume oscillator climbs higher and turns positive and the OSC momentum oscillator looks near to a Buy signal.

Market still in a Neutral – Slightly Bearish mode and waiting for a catalyst for direction – this could mean the market is rolling over or could just be the squeeze before the next advance – we shall see.

Be prepared for whatever comes next:

Steve Rushton August 27, 2017No Comments

S&P500 daily update S&P500 signal

Libération

No follow through. Cover signal triggered at 2440, but not quite a sell signal.

Be prepared for whatever comes next:

Steve Rushton August 25, 2017No Comments

S&P500 daily update

Bagradas

No follow through, yet. A re-test of the 55 ema and still on a Buy Signal, just.

The Warning phase moves up to a Short Alert, but curiously the T volume oscillator continues higher – some strength behind the new small T? Maybe.

Still looking for an attempt on the declining resistance, but another break lower remains a distinct possibility.
Be prepared and Hedge accordingly.

Be prepared for whatever comes next:

Steve Rushton August 24, 2017No Comments

S&P500 daily update

Vulcanalia

“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

A strong upward thrust through the important 55 ema and a gap up and go day which closed near the high of the day.

A strong Buy Signal and the forming of a new small T structure which IF the low holds projects strength into late August and also into September.

Be prepared for whatever comes next:

Steve Rushton August 23, 2017No Comments

S&P500 daily update S&P500 signal

S/T Buy Signal at 2444

The market is in fine form again today and back at the important 55 ema at 2444.

As you know this is an important level and failure here would be continuation Sell Signal.

A close above 2444 is an S/T Buy Signal, with an expectation of an attempt on the descending resistance of the declining channel.

Steve Rushton August 22, 2017No Comments

S&P500 daily update

Bosworth

The market tests the downside but holds firm above the recent low with some signs of stabilisation apparent.

Be prepared for whatever comes next:

Steve Rushton August 22, 2017No Comments

S&P500 daily update

Eclipse

An attempt to recover the 55 ema stalls and the selling resumes into the week's close.

A visit to the lower reaches of the channel seems more and more likely as the market starts to stair-step downwards.

Be prepared for whatever comes next:

Steve Rushton August 20, 2017No Comments

S&P500 daily update

Gravelotte

Another Sell Signal at an Echo high after a short-lived Buy Signal, after another kiss good-bye, and a significant drop below the 55 ema as the market starts to define a descending channel.

Again, look for stabilisation in price and oscillators before the next advance, as the market looks to build a platform for the next large T structure.

Be prepared for whatever comes next:

Steve Rushton August 18, 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.”
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.”
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“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