Trading the Line

Gunfight

There's always a man faster on the draw than you are,
and the more you use a gun, the sooner you're gonna run into that man.
– Gunfight at the O.K. Corral, 1957, Dir: John Sturges

Straight down from the open and quickly sliced through the 'cover signal line' into the mid channel for a strong recovery bounce that very nearly regained the Buy Signal line, but not quite.

This is follow through from the selling initiated by the projected high and echo high and leaves a nasty declining resistance line to be negociated in due course. It confirms 20 October as an important short term peak at the strong arm of the T structure.

There may well be some follow through from the bounce as we have another projected high for tomorrow and another echo high scheduled for tomorrow or Friday.

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 October 26, 2017No Comments

S&P500 intraday update S&P500 signal

Cover Signal confirmed at 2559

A nasty drop and some relentless selling in the morning, followed by a sharp bounce and rally off the Mid-channel which is often an initial support on first visit.

Technically some damage done and just failed to close back above the important Buy Signal line.

Therefore a cover signal at 2559 for now whilst the market stabilises.

And that is a nasty declining angle from the all time high that we will need to negociate moving forwards

Steve Rushton October 25, 2017No Comments

S&P500 daily update

Saint Crispin’s

“From this day to the ending of the world,
But we in it shall be remembered –
We few, we happy few, we band of brothers;
For he to-day that sheds his blood with me
Shall be my brother; be he ne’er so vile,
This day shall gentle his condition;
And gentlemen in England now-a-bed
Shall think themselves accurs’d they were not here,
And hold their manhoods cheap whiles any speaks
That fought with us upon Saint Crispin’s day.”
– William Shakespeare, Henry V

Initial bounce sold into, some unfinished business maybe but still holding up above Friday's gap.

Be prepared for whatever comes next:

Steve Rushton October 24, 2017No Comments

S&P500 daily update

August Echo

The market opens at all time highs and initiates a retracement.

A slow but persistent day of selling displaying a distinct lack of buying power – the effects of an Echo high* and an important peak projection of the T structure.

How much of a retracement is required remains to be seen, but for now, the market is still well above the Buy signal line, and additional peaks are projected for later this week and into November.

It looks to me that we are now entering a period of sideways consolidation that could see additional highs and lows as the market defines its new upper range, whilst building energy for the next move.

* This is the first of a series of echo highs projected from the August period. For more information please subscribe to the daily updates.

Be prepared for whatever comes next:

Steve Rushton October 24, 2017No Comments

S&P500 daily update

Apples and oranges

Now that's the spirit !

Friday's push higher accurately projected by the T structure, with a solid gap up and go and close at the highs type day as the market continues to leave bystanders behind. This train waits for no one.

Momentum ticks up, as does the T volume oscillator.

This is also in-line with the scheduled echo high and so it remains to be seen whether this is an important peak or whether the additional projections will continue to lift the market higher next week. Hedge and lock in profits accordingly.

In the meantime, higher highs continue to beget higher highs. For those who still do not understand why the market is moving higher and will probably continue much higher in the coming months, please read my recent free reports.

Enjoy the weekend.

Be prepared for whatever comes next:

Steve Rushton October 21, 2017No Comments

S&P500 daily update

Catal-exit

A gap down for a test of the current advance found important support and plentiful buyers for a text book recovery all the way back to close at a token new high.

The strength is in-line with the expected peak projected by the major arm of the T structure which projects a peak for today. There is also an echo high scheduled for today and the combination suggests that we may see some strong selling either today or just after the high on monday.

With one successful test of the recent advance acheived, I would now expect to see the market start to define an upper range with a series of probes to the upside and to the downside whilst continuing its grind slightly upwards and sideways.

Be prepared for whatever comes next:

Steve Rushton October 20, 2017No Comments

S&P500 daily update

Blue skies and flowers

“I learned that just beneath the surface there's another world, and still different worlds as you dig deeper.
I knew it as a kid, but I couldn't find the proof. It was just a kind of feeling.
There is goodness in blue skies and flowers, but another force – a wild pain and decay – also accompanies everything.”
– David Lynch

Still gently pushing at the highs, teasing us with the possibility of breaking higher.

Overnight breaking news from Catalonia has send the markets down a little. This will be the first real test of the market's strength since 9 October and how the cash market responds will be telling.

Be prepared for a cover signal should the markets continue to move lower today.

Be prepared for whatever comes next:

Steve Rushton October 19, 2017No Comments

S&P500 daily update

The main thing

“you just had to be still and have faith, that was the main thing.”
– Jim Dodge, Fup, 1983

–

The market continues with a little shake and grind to wander slowly higher in what can only be described as an exceptionally calm and linear manner just below the resistance line.

With such apparent smoothness it seems likely that the market will use every last bit of the current T structure, and so we should watch each projected arm of the structure carefully.

It seems that the market has yet to find its target, but at some point it will, and then I would expect the market to open out into a larger range, pushing out in both directions and establish some new support levels.

Be prepared for whatever comes next:

Steve Rushton October 17, 2017No Comments

Uncategorized

On the Edge

“…I don't rightly know. It just ain't possible to explain some things, maybe even most things. It's interesting to wonder on them and do some speculation, but the main thing is you have to accept it – take it for what it is, and get on with your getting."
– Jim Dodge, Fup, 1983

Another high in-line with the current T structure. And another high is scheduled for later this week as the market continues to grind casually higher.

No signs of any real weakness yet, just some profit-taking at the (strong) resistance line from 1 March as the market waits cautiously for a catalyst. Perhaps on the Edge for something…

Be prepared for whatever comes next:

Steve Rushton October 17, 2017No Comments

S&P500 daily update

Conqueror

“I have persecuted its native inhabitants beyond all reason. Whether gentle or simple, I have cruelly oppressed them; many I unjustly inherited; Innumerable multitudes, especially in the county of York, perished through me by famine or the sword."
– William the Conqueror

–

The market continues to gently push against the rising resistance in a continuation of the low volatility drift higher whilst momentum and breadth fade – suggesting that we may be entering a sideways distribution phase prior to a possible decline, most probably towards the end of the current T structure.

However, the current indications are that any decline will be relatively shallow and that the current T structure is potentially larger and could draw strength from earlier declines than drawn.

Be prepared for whatever comes next:

Steve Rushton October 16, 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 BUY Signal at 7413 on 30 July

...

S/T SELL Signal active below 7462 st 7440 on 26 July

COVER Signal below 7522 at 7440 on 17 July

S/T BUY Signal at 7398 on 29 June

S/T SELL Signal active below 7344 on 26 June

COVER Short Signal above 7361 on 25 June

S/T SELL Signal below 7422 on 23 June

COVER Signal below 7452 at 7365 on 23 June

S/T BUY Signal at 7500 on 18 June

COVER Short Signal at 7500 on 18 June

S/T SELL Signal at 7424 on 17 June

COVER Signal at 7454 on 17 June

S/T BUY Signal at 7404 on 11 June

COVER Short Signal at 7337 on 10 June

S/T SELL Signal at 7462 on 05 June

COVER Signal at 7553 on 05 June

S/T BUY Signal at 7586 on 04 June

COVER Signal at 7554 on 03 June

S/T BUY Signal at 7413 on 20 May

COVER Signal at 7411 on 15 May

S/T BUY Signal at 6457 on 31 Mar

COVER Short Signal above 6398 on 31 Mar

S/T SELL Signal at 6543 on 26 Mar

S/T BUY Signal above 6600 at 6620 on 25 Mar

COVER Short Signal above 6567 on 25 Mar

S/T SELL Signal below 6554 on 24 Mar

COVER Short Signal above 6581 on 24 Mar

S/T SELL Signal below 6554 on 24 Mar

COVER Short Signal above 6581 on 24 Mar

S/T SELL Signal below 6554 on 24 Mar

COVER Signal at 6590 on 23 Mar

S/T BUY Signal at 6623 on 23 Mar

COVER Short Signal above 6563 at 6600 on 23 Mar

S/T SELL Signal at 6666 on 18 Mar

COVER Signal at 6693 on 18 Mar

S/T BUY Signal at 6729 on 16 Mar

COVER Short Signal above 6668 at 6698 on 16 Mar

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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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