Trading the Line

S/T Buy at 2142

The move above 2142 today triggered a tentative short term Buy Signal that required confirmation by the close.

The T volume oscillator turns positive and gives credence to the new T structure.

If the T structure continues then we should see a push upwards into monday 24th and if we do not pull back below the recent low then we could see a second push up into November 8 which also coincides with the next series of cycle highs (pink and green arrows).

However there is a significant rising resistance line (previous support), as well as the descending line, and the danger is that we simply back-kiss these lines and then move lower.

Be prepared.

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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 & 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.

Steve Rushton October 19, 2016No Comments

S&P500 daily update

Buying above 2140 ?

Speculative Buying pushed hard into resistance, but resistance at 2140 holding (for now)

Potential T structure emerging and potential double bottom at the 2120 level.

If the market is going higher, the potential structure outlined points to peaks just prior to the election.

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Steve Rushton October 19, 2016No Comments

S&P500 daily update

Machines are in control

Market continuing to reluctantly and gradually break-down.
Expect extremely choppy trade to continue.

Until there is some obvious catalyst to drive direction, machine-driven trading will continue to dominate the market… oscillating backwards and forwards in tune with large scale hedging activities, and so it would make sense to think like a machine.

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Steve Rushton October 18, 2016No Comments

S&P500 daily update

Endgame

A quick speculative (ie very short term) buy above the 2140 resistance level took the market into stronger resistance at 2148.
Failure there and resumption of the Sell Signal at 2137 as the market repeatedly sells into the rallies.
Looks like a 'back-kiss' of the underneath of the rising support lines.

This is the end of the large red T structure as drawn from the T volume oscillator peak on March 4th.

We should see a void of buying power here and then we will be looking for a bottoming pattern in the T volume oscillator and at some point a new T structure to emerge.

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Steve Rushton October 16, 2016No Comments

S&P500 daily update S&P500 signal

Cat’s paw

Nice bounce at horizontal support.
Covered at 2128, and speculative buying only above 2130.
Short signal still in place after breakdown through important rising lines but perhaps there is more in this bounce first, strong resistance at 2140 now.

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Steve Rushton October 14, 2016No Comments

S&P500 intraday update S&P500 signal

Continuation Short Signal at the open

Movement below the recent support level, and resumption of short signal

Steve Rushton October 13, 2016No Comments

S&P500 daily update

Negatively charged

Support holding in the 2130s (for now) but everything looking rather negatively charged.
We are still within a triangular pattern, and if we can hold support here we could see a continuation of the recent choppy day-traders type action into the end date of the red T structure.

A break below the tightening bollingers (squeeze) and we may well be looking at 2070-80 in short order…

OSC oscillator makes a Sell signal.

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Steve Rushton October 13, 2016No Comments

S&P500 daily update

Deciding line

And finally some 'movement' and down to a strong ascending support line in the mid 2130s.
What happens here will be interesting because it is potentially a 'tipping' point for the market.

Note that there is a possible end date to the red T structure from the March 11 thrust because this is just above the 'Brexit' low.

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Steve Rushton October 12, 2016No Comments

S&P500 intraday update S&P500 signal

Sell Signal at 2149

Short term Sell Signal from 2149.

Steve Rushton October 11, 2016No Comments

S&P500 daily update S&P500 signal

Short Term Buy above 2163 but still in triangle

Early bullish start to the day triggered a short-term Buy Signal but as we can see the consequent pullback remains consistent with the recent triangular and descending resistance.

Given the benefit of doubt due to the potentially bullish nature of the end arms of the large red T and recent small blue T, but looks like we may still be suffering from the see-saw day-trading environment.

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Steve Rushton October 11, 2016No 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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