Trading the Line

Three Kings presents

Three Kings presents the Dow to 20k (well near enough for rock n roll), and aside from a push outside of the bollinger I cant see any good reason to sell. The structure is looking good for a climb into MLK and into the Inauguration to complete the next major arms of the T structure.

If the strength continues, the immediate target is 2293-5, and then a Fibonacci extension of the last rally, in line with the previous one, projects 2320s.

Having said that, lots of selling on Friday under the hood as indicated by the T volume oscillator's drop back to near zero, so we should keep an eye on this for any hints of a failure.

Be prepared: To receive detailed analysis, more clarity and the updated daily Buy / Sell levels being generated by the system before the market opens, please Sign up for Alerts & Observations – includes access to Members Area and Explanatory Notes

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 January 8, 2017No Comments

S&P500 daily update

Three Kings

No follow through and an inside day, and tightening bollinger bands as the market sits just below all time highs.
No reason to complain just yet but the oscillator Sell Signal is still active and this is still suggesting that the market may struggle to go higher in the short term, and so the next scheduled highs may not be much higher.

Steve Rushton January 6, 2017No Comments

S&P500 daily update

Twelfth Night

If music be the food of love, play on.

William Shakepeare, Twelfth Night

A strong move up above the descending resistance and now at the horizontal.
T volume oscillator turns positive and further confirms the small T into the Inauguration which now looks like another high..

Steve Rushton January 5, 2017No Comments

S&P500 daily update

Hopscotch

Technically a significant improvement yesterday as the market lifts out of the Short Alert.

The small T drawn has been activated by the T volume oscillator and should use the cash-build up from the December oscillator peaks, and this projects highs for MLK and the Inauguration, in line with the larger T structure.

However we are not clear of the descending resistance line (yet), and so we should keep an open mind as any further weakness would reactivate the previous short signal.

Steve Rushton January 4, 2017No Comments

S&P500 intraday update S&P500 signal

Fireworks for the New Year

Sent to my readers prior to the open:

And a very warm welcome to 2017

As mentioned, the first test would be last week's pullback to the rising Gann line at 2135 and as we can see the Futures are indicating a strong open and a successful test.

Very Short Term bullish above 2244, and an S/T Buy Signal is confirmed above 2256.

Ideally we also would like to see the T volume oscillator move above zero to activate a small T with strength into MLK.

–

And so an S/T Buy Signal at the open at 2256.
Market fizzled but held onto the Buy Signal (and above the Sell signal level) into the close

Steve Rushton January 3, 2017No Comments

S&P500 daily update

Entrance

All the world’s a stage,
And all the men and women merely players;
They have their exits and their entrances,
And one man in his time plays many parts,
His acts being seven ages…

– William Shakespeare, As You Like It

Enter a New Year full of excitement, complexity and high speed trading.
Market pushed down into the rising Gann line from the November 4 low and held.
This is the first test for 2017.

A bounce here would potentially project new all time highs at the next cluster of highs scheduled for 21-26 January.
If the market continues lower then we may meet the 55 ema at about 2210 – previous resistance now possible support.

Either way we are now looking for a low and a small T to take us into the next series of peaks.

Steve Rushton January 1, 2017No Comments

S&P500 intraday update S&P500 signal

S/T Sell Signal below 2242

With the failure of the morning rally off 2242 it seems that we may be getting an S/T Sell Signal.
There is potential support here and also below at 2235, so beware of another bounce and it would be cancelled out by strength above 2250 today.

Steve Rushton December 30, 2016No Comments

FREE REPORTS

Two Thousand Seventeen

In the last report, which was just prior to the Fed meeting I discussed the current T structure and the expectation of highs associated with ends of the various arms of the T scheduled for the week of December 13 and then New Year, and then late January and possibly late February. Possibly higher highs but not necessarily.

As we can see, we did indeed get an important high at the end of the 2nd major arm of the T on December 13 and we have now seen the 3rd major arm complete yesterday, and with the declining momentum since then we have found the market struggling to make new highs.

Although the market peaked on December 13, after numerous warnings from the Arms index, Put Call ratios and Relative Strength, price didn't actually make a formal 'Cover' Signal until December 28, and didn't yet make a Sell Signal, as it plays in the vicinity of what I call the Mid-Channel – an important bull/bear line for short term direction.

And so moving into an exciting New Year full of new expectations due to all of the political changes associated with the Trump election.

I am looking for a stabilisation period to be resolved before the next move higher as the market re-charges after that exuberant move in early December. As we can see from the T Structure projecting further highs in January (13th and 21st) and in February (16th and 24th), and also from the prescence of a cash-build up from the recent oscillator highs that can form a small T structure that could project into those same time frames. These may be highs but not necessarily higher highs, especially given the noticeable drag on momentum since December 13.

Be prepared for whatever comes 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.

Wishing you all a 'Very' New Year and much Prosperity.

Steve Rushton December 30, 2016No Comments

S&P500 daily update

Countdown into 2017

Last trading day of the year and getting ready for a party to bring in the New Year.

Market playing with the mid-point and getting ready for the next move – perhaps an early January attack at 2300 to salute Donald Trump's inauguration – that would fit in with the T structure.

Or if we fail the rising support at 2235-40 – perhaps a nervous look-see at the 55 ema in the 2210s and/or lower boundary in the upper 2170s before rising into the next scheduled highs around 21 January – and that would also fit in with the T structure.

A 'Very' New Year Everyone …

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Steve Rushton December 29, 2016No Comments

S&P500 daily update S&P500 signal

Cover at 2258

Cover Signal at 2258 as a lack of buyers at 2270 coincides with the decline in momentum and reinforced by OSC oscillator Sell Signal.

S/T Sell signal not yet triggered and we have strong rising support lines but according to the T structure this is the downdraft from the September 12 bounce and another arm of the T structure expires tomorrow suggesting that we may suffer a lack of buying power into New Year whilst the market stabilises.

To receive further analysis, more clarity and the updated daily Buy / Sell levels being generated by the system before the market opens, please Sign up for Alerts & Observations

Steve Rushton December 28, 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 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.
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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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The Gambler (2014), Dir. Rupert Wyatt