Trading the Line

Midsummer’s Dream

“Are you sure / That we are awake? It seems to me / That yet we sleep, we dream”

– William Shakespeare, A Midsummer Night's Dream, 1595-6

Markets respond to the scheduled echo and pulse highs with a swift day of relentless profit-taking, bringing price back down towards the cover signal level and potentially strong support levels.

Admittedly, rather a negative development which has the potential to leave 2453 as a peak for a while and explore the downside. We should therefore monitor developments carefully and be prepared to wait.

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 June 21, 2017No Comments

S&P500 daily update

Florentina

Market continues its determined search for higher prices with a solid gap and go and close at the high day.

T volume oscillator back above zero and and the OSc oscillator improves, looks to cancel the momentum 'sell signal' unless the market retraces significantly.

The next negotiation is the Echo high and Pulse high scheduled for yesterday which could cause a speed bump or retracement of yesterday's move, but still, it does look like the New Large T Structure drawn at the most recent low is going to power the market to the upper reaches of the channel, perhaps sooner than later.

Be prepared for whatever comes next:

Steve Rushton June 20, 2017No Comments

S&P500 daily update

Juneteenth

“But what a feeling can come over a man just from seeing the things he believes in and hopes for symbolized in the concrete form of a man. In something that gives a focus to all the other things he knows to be real. Something that makes unseen things manifest and allows him to come to his hopes and dreams through his outer eye and through the touch and feel of his natural hand.”

– Ralph Ellison, Juneteenth, 1999

Market still range-bound and although early trade was below the cover signal level, it bounced back again to hold onto the Buy Signal level into the close.

An echo and pulse high scheduled for Monday 19 June could present another high.

IF the 'possible new large T structure' is correct then we could expect to see the market continue to grind away defending the highs and preparing for new advances.

IF not, and the 'small price T at the recent spike low' was just an extension of the previous DB T structure, we should see a more significant correction.

At the moment price is hinting at the first option, whilst the oscillators are hinting at the second.

Be prepared for whatever comes next:

Steve Rushton June 18, 2017No Comments

S&P500 daily update

Bloomsday

Ask no questions and you'll hear no lies.

– James Joyce, Ulysses, 1922

The market continues marking out the recent range defined by the 9 June roller coaster day, and with the weakening of the oscillators in a bullish environment we might expect this volatile chop to continue, especially considering the effects of some hard selling in the tech sector.

This is reminiscent of the January and early March periods with the market absorbing its discovery of higher prices.

Be prepared for whatever comes next:

Steve Rushton June 16, 2017No Comments

S&P500 intraday update S&P500 signal

Continuation Buy Signal

Market opened well below the cover signal line, but tested the overnight low and then never looked back.

The Bull is still showing its muscles with a 12 point rally off the lows and closed back above the Buy signal line.

A continuation S/T Buy Signal from 2429.

The caveat is that with both the T volume and Osc oscillators turning negative that the follow through may be limited.

Steve Rushton June 15, 2017No Comments

S&P500 daily update

In motion

We think the representation to be unimpeachable, until we throw all our preconceived impressions on one side, and seek the truth by independent observations from Nature herself.

– Eadweard Muybridge

A profit-taking day and a short term peak and another touch of that rising line from the low, still in-line with the suggested 'possible New Large T structure' which is still only a possibility as the T volume oscillator backs off from its recent high and the Osc oscillator remains neutral.

Still holding up above the Buy Signal line for now, but the Osc oscillator is hinting at the potential for a decline or choppy grind sideways, and we may need to see some more probes to the downside before the next strong move upwards.

So long as the market doesn't make a cover signal then a grind to higher prices is still likely, but if it does make a cover signal we will look for a new low to occur and form a new structure which may still support the current possible projection.

Be prepared for whatever comes next:

Steve Rushton June 15, 2017No Comments

S&P500 daily update

Stars and Stripes

The Bull flexes its muscles and proves to us that we are still very much on a Buy signal.

The T volume oscillator makes a tentative new relative high, potentially activating the cash-build up line that goes all the way back to the February highs in the oscillator, and so I have drawn in the possible new large T structure.

Still early days, but if correct, this structure projects highs towards the end of June that would synchronise with the scheduled echo and pulse highs and then possible further strength into late July and August.

Be prepared for whatever comes next:

Steve Rushton June 14, 2017No Comments

S&P500 daily update

Catalina

Market remains relatively unscathed – a bounce off the rising support line from the recent low, testing the downside, but holding up above the Buy Signal level especially with the last minute push higher.

The T volume oscillator is still above the zero line providing strength but the OSc oscillator is descending and will most probably make a 'sell signal' today – unless we get a really strong up day today.

There is a possible small price T centred on Friday's spike low which could provide some strength into the next cluster of scheduled echo and pulse highs, unless of cause the market does decide to rollover and sell off. Watch the rising line from the recent low for evidence of that.

Be prepared for whatever comes next:

Steve Rushton June 13, 2017No Comments

S&P500 intraday update

Cover Signal pre-market, maybe

No follow through on Friday afternoon's recovery in the Futures market which are currently trading below the Buy / Cover Signal level and so it seems that the late afternoon rally on Friday was simply short covering into the Friday expiration, and that the damage done (especially to the technology sector) was real.

Ultimately we are now looking for evidence of a new T structure that will provide a projection for the next advance, and so in the meantime we should approach the market with caution.

—

Although selling off in the morning, the Market held up above the cover signal level into the close and the current Buy Signal is therefore still active for now. Risk remains high.

Steve Rushton June 12, 2017No Comments

S&P500 daily update

Roller Coaster

The important 9 June end date for the 2 current T structures certainly produced an exciting day at the funfair – something for everyone.

Perhaps the sign of things to come – an increase in volatility – as the market makes a new high, reverses dramatically, plunges below the cover level, and then recovers in a late afternoon rally into the close.

Significant damage done, but the T volume oscillator ends the day positive indicating overall positive breadth and the Buy Signal remains for now. In contrast the OSc oscillator is falling and looks like it may make a 'sell' signal in a day or two and is signalling a slowing of the bullish momentum.

Although the market may grind or chop higher, short term the risk of a more serious decline are elevated. Trade carefully.

Be prepared for whatever comes next:

Steve Rushton June 10, 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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“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.”
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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.
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