Trading the Line

Fat Man

"Fat Man" was the codename for the atomic bomb that was detonated over the Japanese city of Nagasaki by the United States on 9 August 1945. It was the second of the only two nuclear weapons ever used in warfare, the first being "Little Boy", and its detonation marked the third-ever man-made nuclear explosion in history.
– Wikipedia

Testing a new high, perhaps a kiss goodbye and a reversal.

Still holding up above the Buy Signal level but a Warning is in development.

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 9, 2017No Comments

S&P500 daily update

Gravelines

At the end of the small T structure, and attempting to grind higher – the low volatilty drift continues.

The T volume oscillator remains negative and the OSc oscillator is neutral and close to a Sell Signal.

Be prepared for whatever comes next:

Steve Rushton August 8, 2017No Comments

S&P500 daily update

Pérignon

"Come quickly, I am tasting the stars!"
– 'Dom Pérignon, 1693'

The market continues in its recent sideways jaunt and holds up above the Buy Signal level, again.

Momentum and breadth continue to slow but price is holding up as the market appears to be correcting in time rather than price, for now.

A short break for me – next update tuesday.

Be prepared for whatever comes next:

Steve Rushton August 3, 2017No Comments

S&P500 daily update

Algeciras

Market still holding up and finding strong support at the Buy Signal level (for now).

Yesterday was potentially a high – price and/or momentum – as projected by the larger T structure.

With many indications that a momentum or price peak is close to hand it may be time to take a well deserved vacation.

Be prepared for whatever comes next:

Steve Rushton August 3, 2017No Comments

S&P500 daily update

Gulf

Smoke and Mirrors at the highs as we wait for the next move.

Be prepared for whatever comes next:

Steve Rushton August 2, 2017No Comments

S&P500 daily update

Lughnasadh

It was upon a Lammas night,
When corn rigs are bonie,
Beneath the moon's unclouded light,
I held awa to Annie;
The time flew by, wi' tentless heed,
Till, 'tween the late and early,
Wi' sma' persuasion she agreed
To see me thro' the barley.

– Robert Burns, The Rigs O'Barley, 1783

Lughnasadh / Lammas is one of the four ancient Celtic Fire Festivals and is held on 1st August every year.
It celebrated the beginning of Autumn, the first harvest festival and the firstfruits.

Marking out at the highs, still on a Buy Signal, as we enter the slow days of August.

Be prepared for whatever comes next:

Steve Rushton August 1, 2017No Comments

S&P500 daily update

Cravant

Market continues to hold up above the Buy Signal line, but also shows further signs of deterioration.

Be prepared for whatever comes next:

Steve Rushton July 31, 2017No Comments

S&P500 daily update

Warsaw

A long spike down below the cover signal level but a recovery into the close.
A successful test of the recent move and its rising support line but still, an ugly reversal from the high which carries a 'warning' that this current move may be nearly over.

An echo high scheduled for today so any recovery from yesterday may be short-lived.
Expect further volatility associated with the endgame of the current T structures.

Be prepared for whatever comes next:

Steve Rushton July 28, 2017No Comments

S&P500 daily update

Basian

Sideways at the high, and waiting for the catalyst to drive the market either up to the next significant level or down to back test some recent or rising support.

Be prepared for whatever comes next:

Steve Rushton July 27, 2017No Comments

S&P500 daily update

Potsdam

The market pops up into 2480 on the pulse high *.
Next negotiation is Friday's echo high *.
Low volatility drift higher continues.

The mantra Never short a dull market comes to mind.

* For an explanation of important concepts such as the pulse and echo highs currently active in the market, please sign up below.

Be prepared for whatever comes next:

Steve Rushton July 26, 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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Reminiscences of a Stock Operator: Annotated Edition

by Jon D. Markman

With new commentary and Insights on the life and times of Jesse Livermore Reminiscences of a Stock Operator is the fictionalized biography of perhaps the most famous financial speculator of all time–Jesse Livermore. This annotated edition bridges the gap between Edwin Lefevre′s fictionalized account of Livermore′s life and the actual, historical events, places, and people that populate the book. It also describes the variety of trading approaches Livermore used throughout his life and analyzes his psychological development as a trader and the lessons gained through hard experiences.

“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