Trading the Line

Of Princes

“Not marble nor the gilded monuments
Of princes, shall outlive this powerful rhyme,
But you shall shine more bright in these contents
Than unswept stone, besmeared with sluttish time.
When wasteful war shall statues overturn
And broils roots out the work of masonry,
Nor mars his sword nor war's quick fire shall burn
The living record of your memory.
'Gainst death and all-oblivious enmity
Shall you pace forth; your praise shall still find room
Even in the eyes of all posterity
That wear this world out to the ending doom.
So, till judgement that yourself arise,
You in this, and dwell in lovers eyes.”

– William Shakespeare, Sonnet 55

Market takes a slight breather in its pursuit of new highs and we move into the long memorial weekend.

The market looks 'strong' having taken out the recent resistance at 2400 and higher prices are to be expected, with the oscillator supporting the new small T centred on the 17 May low and projecting a peak on the 8 June, also inline with projections from the Secondary DB T Structure which may be the primary structure.

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 May 30, 2017No Comments

FREE REPORTS

Memorandum

Time for an update on the S&P 500.

In my last report, I discussed the new T structure as the market popped up on the 'certainty' of the French Election and proceeded to attack the 2400 level. At that time it seemed likely that a pullback might occur due to the strong resistance at 2400 and the prescence of a large gap.

The one day sell-off last week closed that gap, price made a quick sell signal and headed for a long term rising trend line that originates at the Election low. That support line was never quite reached as the market headed straight back up to the highs generating a new Buy signal in the process, and a new small T.

During this time I have also reflected upon the T structures that have been created in March and April due to the series of oscillator and price lows. It is complex – there are several higher lows in the oscillator lows and 2 similar price lows, followed by the recent higher low.

The first oscillator low & price of 9 March creates a very small simple T with the lower high.

The second oscillator low of 21 March which drops into the lower (opening) price low of 27 March sets up a collapsing T structure, and a shadow T structure centred on the price low.

The third oscillator & price low of 13 April sets up a double bottom, and this provides 2 possible T structures – a double bottom DB T structure centred inbetween the 2 lows and a second(ary) DB T structure centred on the final low.

The fourth oscillator & price low of 17 May creates a simple T projecting into 8 June.

Usually the Double bottom T structure would be more dominant and the secondary structure at the final low would project lows at its final arms rather than highs.

Interestingly the DB T structure and the Secondary DB T Structure have both recently produced highs at 9 and 15 May respectively, and this has led me to believe that the Secondary DB T Structure is actually the primary structure. This may be because the price low of 27 March was not a low that was sold into but rather that the market opened down significantly and rallied from that price.

And so the question arises, what's next?

Late last week we reached the end of a major arm of the Secondary DB T structure and the first arm of the new T structure, and so a pause or pullback here could be expected. However, both of these structures also project highs into the 6-9 June period.

Looking at the super large T structure centred on the early 2016 double bottom we can see that there is the possibility of a high being projected from the 19 September 2014 peak – 342 days from high to low and back to high projects 8-9 June 2017. This is the purple arms at the top of the first chart.

Notice that the gray T structure drawn at the final low of that double bottom produces a series of Echo lows.

Be prepared for what is coming next:

For more detailed ongoing analysis of the developments in the S&P500 index on a daily basis, as well as my personal Buy and Sell Signal trigger levels, please Sign up for daily Alerts & Observations. This includes access to the Members Area for an archive of all of my alerts and updates and my Explanatory Notes pdf which gives detailed explanations on all of the concepts being discussed.

Steve Rushton May 28, 2017No Comments

S&P500 daily update

Feel like flying

A gap up and go day into new highs, with the next minimum target of 2420-30 looking acheivable.

An Osc Buy Signal.

Perhaps a small speed bump here, after six days of gapping up, and at the first arm of the New T structure, and at a major arm of the secondary DB structure..

Next major echo high scheduled for early June, in conjunction with the New T structure.

I am noticing that the 'secondary DB structure' appears to be supportative of this move, and so may indeed be the primary structure – it also points to highs in the same period of 6 – 9 June.

Be prepared for whatever comes next:

Steve Rushton May 26, 2017No Comments

S&P500 daily update

Africa

Poised at all time highs with the first arm of the small New T projecting an initial high for today.
Osc oscillator turning around and close to a buy signal.

Be prepared for whatever comes next:

Steve Rushton May 25, 2017No Comments

S&P500 daily update

Turtles

Market recovers all of wednesday's losses and heads into what may well of course be resistance at 2400 at the end of the red Amalgamation DB T structure. A pause or pullback here would be consistent with that, and would also test the strength of the move that is the New small T with its first main arm projecting into Friday for the holiday weekend. However the continued rise of the T volume oscillator gives credence to the new small T and increases the possibility that this is a bigger structure, now potentially drawing power from the 1 March high.

Be prepared for whatever comes next:

Steve Rushton May 24, 2017No Comments

S&P500 daily update

Humility

Market triggers a second Buy Signal at the open and is confirmed by the close above 2385.
It appears that the market is in a hurry to correct last week's drop and get back to the all time highs with a slingshot move.

Today is the endgame of the DB T structure, and the T volume oscillator has recovered to the point that gives strength to the New small T and projects towards the cluster of scheduled highs in the first week of June.

Be prepared for whatever comes next:

Steve Rushton May 23, 2017No Comments

S&P500 intraday update S&P500 signal

S/T Buy Signal at 2388

Above the Buy Signal line at the open.
Needs to hold above 2385 into the close to confirm.

Steve Rushton May 22, 2017No Comments

S&P500 daily update

Momentia

“There is surely nothing other than the single purpose of the present moment.
A man's whole life is a succession of moment after moment.
There will be nothing else to do, and nothing else to pursue.
Live being true to the single purpose of the moment.”

– Tsunetomo Yamamoto, Hagakure: The Book of the Samurai

A strong gap and go up into and above the Buy Signal line, but couldn't hold onto all of the gains into the close, cancelling the Buy Signal for now. Failure occurred at the mid-channel line.

The T volume oscillator improves considerably showing strong breadth behind yesterday's rally, and supports the possibility that we have a new small T structure – if the low holds.

Be prepared for whatever comes next:

Steve Rushton May 20, 2017No Comments

S&P500 intraday update S&P500 signal

S/T Buy Signal above 2384

Strong rally up to the Buy Signal line

S/T Buy Signal above 2384.

Vigilence required.

—

Break back below 2384 cancels out the Buy Signal for now unless we see a rapid recovery into the close.

We will re-assess over the weekend.

Steve Rushton May 19, 2017No Comments

S&P500 signal

Sell Signal cancelled

Back at the previous Sell Signal level and so cancelling out above here with an S/T Buy Signal above at 2384.

With such a quick move up it is always possible that the market stalls here.

Vigilence required.

Steve Rushton May 19, 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