Trading the Line

Light shines on

I was blind, now I can see…
you made a believer out of me…
I'm moving on up now, getting out of the darkness…
My light shines on, my light shines on, my light shines on…

Primal Scream, Moving on Up, 1991

Moving on up and breaking out again.

Of course, this might be a top, and we do have an arm of the T structure projecting to February 8 (and the previous major arm was 1 or 2 days late), so we could also certainly expect to see a peak hereabouts.

BUT we are also potentially seeing a re-emergence of the bullish strength that lifted the market up from November, and I am seeing another cash-build up ready to be used, and I am seeing momentum to the upside increasing.

I think that yesterday may have been an important break proving the Bulls' aggressive intentions and we might be looking at a runaway breakaway situation into a blow off top.

The T volume oscillator is close to breaking a large cash build up line.

We watch the oscillators for clues and price is the leading indicator.

Be prepared: To receive detailed daily analysis, guidance and the updated daily Buy / Sell trigger levels being generated by the system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and the Explanatory Notes which explain how this system works.

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 February 10, 2017No Comments

FREE REPORTS

Back in the Jetstream

Having had a little bit of a wobble, in late January – just after our expectation of a peak on 24 January associated with the end of a major arm of the current large T structure – we find ourselves back in the Jetstream and making new all time highs today.

As you can see from the chart below, we have a further out projection for a final peak in this T structure on 27 February or therabouts. Lets give it 2 days extra because there is a 2 day descrepancy in the position of the centrepost of the T structure – the oscillator low is 2 days prior to the price low – giving it a slight shadow.

As mentioned in the previous free report the oscillator drop from +80 is extremely linear and so my expectation is for a fairly linear move up into the final peak at the end of February, followed by some kind of pause or pullback.

But, as you can see there is already a significant cash-build up occurrring in the T volume oscillator during the Trump rally and the cluster of recent lows could soon become a centre-post for a new T structure IF or WHEN the downward sloping cash build up line is broken to the upside.

We watch the oscillator for clues, but we use price as the leading indicator.

Be prepared for what is coming next.

For more detailed ongoing analysis of the developments in the S&P500 index on a daily basis, please Sign up for daily Alerts & Observations – includes access to Members Area and Explanatory Notes.

Steve Rushton February 9, 2017No Comments

S&P500 daily update

Apollonia

Another strong bounce off the rising gann line from the New Years Eve low and continuing to test the descending resistance from the recent all time highs (at 2294-97).

We will have to break one of these lines soon, perhaps a probe higher to 2315, or a drop down to take a look-see at the 55 Ema, currently at 2253.

Be prepared: To receive detailed daily analysis, more clarity and explanations, larger images and the updated daily Buy / Sell trigger levels being generated by the system before the market opens, and intraday alerts when appropriate, please become a Member and Sign up for Alerts & Observations – includes access to Members Area and Explanatory Notes.

Steve Rushton February 9, 2017No Comments

S&P500 daily update

Grind away

Grind away continues with another rejection at 2300, as the market continues to try to creep higher, in what is becoming a familiar re-test of each significant peak. And re-inforces the current descending resistance line.

A significant break of the range will bring in additional buyers or sellers, but in the meantime we need to remain patient.

Possible turn today/tomorrow with another major arm of the T structure expiring.

Price is still 'on a Buy Signal' but the T volume oscillator refuses to confirm any strength, yet.

Steve Rushton February 8, 2017No Comments

S&P500 daily update

Under pressure

It's the terror of knowing
What this world is about
Watching some good friends
Screaming let me out
Pray tomorrow gets me higher higher high

Under Pressure, Queen & David Bowie, 1982

And sparking on vapors.

Buy Signal under pressure already due to the strong descending resistance at 2295.
And the T volume oscillator turns back down below zero

Market continues the squeeze and tease, maybe we get a few more pops, and short-covering rallies, but this is the Trump T endgame.

Steve Rushton February 6, 2017No Comments

S&P500 daily update

Squeeze play

Having played all week with the idea of selling, Mr Market decides to re-visit the all time highs with a squeeze play from the perfect 10 position on thursday.

Assuming that this isn't just a pop and drop (which it could be) then we have the possibility of strength into the next arm of the T structure on February 8, but we have significant resistance here to negociate.

This period is very reminiscent of the final few weeks of the the previous T structure associated with the Brexit low in late September – a very choppy and confusing market indeed.

Steve Rushton February 4, 2017No Comments

S&P500 intraday update S&P500 signal

Buying above 2292

Early morning strength seems to be confirmed so far, so we have an S/T Buy Signal at 2292 this morning.

Maybe we have a few days of strength.

Tight trailing stop and hedge accordingly.

Steve Rushton February 3, 2017No Comments

S&P500 daily update

Libra

“There's always more to it.
This is what history consists of.
It is the sum total of the things they aren't telling us.”
– Don DeLillo, Libra (1988)

Market sits at a perfect 10 and ready for a squeeze – balanced at the 10 day ema in a tight triangle with the averages compressing. Hmm what gives? Expect some volatility soon.

Steve Rushton February 3, 2017No Comments

S&P500 daily update

Pop n Drop

As suspected the market ran from Sell trigger level to Buy trigger level at 2288 and reversed at the descending resistance line.
This is Chopshop behaviour and occurs when the balance of forces are too equal and the market is in the Mid-channel area
This may continue for a while but ultimately a volatile exit will occur because this sets up a squeeze.

Yesterday another arm of the large T structure expired adding credence to a peak, and the OSC oscillator gives up its recent strength.

And at the moment 2288 looks like a gap close and good bye to the island above.
Damage done.

It won't take much to push this vulnerable market over now.

Steve Rushton February 2, 2017No Comments

S&P500 daily update

Holding on

I know what this is…
I have seen one before, many many years ago.
It belonged to a man in a half-remembered dream.
A man possessed of some radical notion.

Inception (2010), Dir. Christopher Nolan

Another short-covering rally off the important 2268 level, and back in the chopshop.
Another important arm of the T structure expires today, and the beginnings of a descending resistance line forming.
But holding onto the short term rising support line, for now.

Steve Rushton February 1, 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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“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