Trading the Line

First quarter

Market heading up into potential resistance as we recover the majority of last week's gains, and a bit of a wobble or failure between 2370 and 2380 would seem likely (but not necessarily required) as we round off the first quarter and look forward to some April Fools.

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 March 31, 2017No Comments

S&P500 daily update

Like sugar and spice

Market relaxing into the feel of things.

T volume oscillator makes a significant move higher above the zero line, adding additional credence to the signal and to the new T structure.

OSC oscillator looking like its turned and close to a OSC Buy Signal indicating that momentum looks up.

Be prepared for whatever comes next:

Steve Rushton March 30, 2017No Comments

S&P500 daily update

Like butter baby

And so the market powers back up through the previous layer of support / resistance to make an S/T BUY Signal and the Bull defends the important rising trend line off the previous highs.

Of course such a strong move up into an area of potential resistance may need some working off, and there is a scheduled pulse high for today, but yesterday's strength in breadth in the T volume oscillator has cut through the cash-build line from the 2400 peak and this confirms the prescence of a small T structure, projecting highs in April.

Be prepared for whatever comes next:

Steve Rushton March 29, 2017No Comments

S&P500 intraday update S&P500 signal

S/T Buy Signal at 2354

Market pushing away at the averages and above 2354 and assuming that it can hold onto this level we are back on a Buy Signal.

Keep an eye out for hints of a reversal and hedge your risk accordingly.

Steve Rushton March 28, 2017No Comments

S&P500 daily update

Bounce at the 55

A strong bounce off the 55 ema as the bears scramble to take profits on the 20 point drop at the open, and rally into resistance.

Price remains most definitely still in the bearish area as the important averages start folding over.

Another trip down seems likely, perhaps kicking and screaming, as the market seems reluctant to give up the February gains.

Be prepared for whatever comes next:

Steve Rushton March 28, 2017No Comments

S&P500 daily update

Challenging the 55

Futures down 20+ this morning leading the market down to the 55 ema – an important pivot line.

This of course may set up a bounce as the market continues to look for a level to stabilise at, but it also suggests a move to the next lower level around 2295.

Expect some wild moves over the next few days.

Steve Rushton March 27, 2017No Comments

S&P500 daily update

Snap Snap

No 'snap-back' just yet in an ugly week that really doesn't bode that well – and the longer we stay here the more likely a visit to the next lower level becomes.

Maybe we are waiting for something…

Be prepared for whatever comes next:

Steve Rushton March 24, 2017No Comments

S&P500 daily update

Consumption

In the kingdom of consumption the citizen is king.
A democratic monarchy: equality before consumption, fraternity in consumption,
and freedom through consumption.

Raoul Vaneigem

A valiant attempt at a rally and found resistance at 2359, site of the recent double tap lows.
Perhaps a fake out or a shake out. Still stabilising.

Sell signal still active, but we need to see deterioration in price to find commitment to the short side as the market works on the support level, and the T volume oscillator shows some signs of life and a divergence from price.

Be prepared for whatever comes next:

Steve Rushton March 24, 2017No Comments

S&P500 daily update

Atmosphere

Formerly there was nothing here,
neither the sky, nor the atmosphere, nor the earth.
There was only an appearance of light,
having no beginning and no end.
Neither small nor large, formless yet having a form.
Indistinguishable yet imbued with knowledge,
consisting of bliss.

– Avyakta Upanishad 1.1, Translator: PE Dumont

Market stabilises and marks out a possible low, pushing up off 2337 and holding onto those 2 support projection lines at 2344.

I have tentatively drawn in what may be a small T structure which does seem to coincide with the pulse highs projected for late March and mid April. Early days yet.

Further stabilisation may of course be required after such a sudden drop.
Still one eye on 2295, given any further reason to sell…

Buyers above and Sellers below.

Be prepared for whatever comes next:

Steve Rushton March 22, 2017No Comments

S&P500 daily update S&P500 signal

The Common Raven

And the silken sad uncertain rustling of each purple curtain
Thrilled me – filled me with fantastic terrors never felt before;
So that now, to still the beating of my heart, I stood repeating,
Tis some visitor entreating entrance at my chamber door –
Some late visitor entreating entrance at my chamber door; –
This it is, and nothing more.

– Edgar Allan Poe, The Raven

BUY Signal covered at 2370, and an S/T SELL Signal at 2363:

The market pops out at the open and challenges the downward descending trend.
Nope, this common raven is selling and taking the market way down.

Admittedly we have had some warnings, pressure upon the recent Buy Signal and the recent selling into strength, as well as the historically high Skew reading.

Failure of the small T of 9 March now shows us that there is another new T structure under construction.
Keep an eye on the T volume oscillator for any signs of recovery.

And so now we are on alert for a new climax low to occur and set up the next major T structure…

Be prepared for whatever comes next:

Steve Rushton March 21, 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.”
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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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