Trading the Line

S/T Buy above 2147

Speculative Buying off the recent lows heads into resistance
S/T Buy signal confirmed (just) with the close above 2147 but needs strength above 2152 – the black line – to confirm the move is on.

And if the move is on, the small unconfirmed gray T with centre at 14 September points to next potential short-term high – 20 September – and if we see further strength into early October.

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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 September 15, 2016No Comments

S&P500 daily update

Waiting game

Still on a short alert, and eyeing up significant support just below – 2100 being a site of significant Put interest for tomorrow if the market doesn't rally into expiration, and 2150 and 2160 offering some resistance if the market does rally.

And another high ARMs reading…

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Steve Rushton September 15, 2016No Comments

S&P500 daily update

Arms over 2

Covered at 2125 in the expectation of a short-term bounce, and prepare for short covering rally into options expiration on Friday.

High ARMS and low NYMO readings suggest that we may have seen enough panic to turn the market around short-term.

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Steve Rushton September 14, 2016No Comments

S&P500 intraday update S&P500 signal

S/T Sell Signal at 2140

Failure of yesterday's rally, reactivated the S/T Sell Signal at 2140.
Market looking to stabilise at the lows.

Steve Rushton September 13, 2016No Comments

S&P500 daily update

Great recovery

And a fantastic bounce at the breakout level of 2120.
Short positions no longer valid above 2140, and now of course looks like the market put in a low on Friday.

If Friday's low holds, then we can construct a small T structure marked in blue which projects strength into September 20 and 27.

However we are at an inflection point and need to see some confirmation of the recovery.

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Steve Rushton September 13, 2016No Comments

FREE REPORTS

Trading the Line Weekend Report – Something gives indeed

Although I have made my readers aware that an outsized move might be about to occur due to the repeated warnings from breadth, momentum, Arms, Put/Call ratios etc, the ferocity of Friday's move and the distinct lack of any buying power was interesting to me because it made me think I must have 'missed' something.

If you have been following my daily updates you will know that I was expecting a short-term high on about 31 August or 1 September to coincide with the major arm of the red T structure.

Something was holding up the market, and that something is often a longer range T structure.

And so back to the charts and zooming out:

What we can see is that the combination of 3 large T structures have been working together, to produce the recent rally into the mid July highs. And that there is, I believe, a direct correlation between the May high in 2015, the centre of the very large T structure of the January 2016 collapse, and Friday's 50 point drop.

So of course, the question on everyone's mind is 'what's next?'

The red T structure is still active and points to a recovery to highs (not necessarily new highs) in the mid-October time after perhaps some volatile days in the coming weeks.

Strong support exists just below at 2105-10.

And a new large T structure is under construction…

Be prepared.

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Steve Rushton September 11, 2016No Comments

S&P500 daily update S&P500 signal

S/T Sell Signal at 2160

With the gap-down below 2170 we have a Short-term Sell Signal initiated at an important cycle high.

We finally received the catalyst for the squeeze that's been building, cancelling out the previous weak bullish signal and cancelling out the potential small T structures discussed.

We are now looking for a new major low to form the next large T structure.

Initial support could be on the important pink rising Gann line at about 2109 on monday.

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Steve Rushton September 10, 2016No Comments

S&P500 daily update

Something gives

Trading within an increasingly tight range and within the mid-channel, which is unusual behaviour and makes signalling direction very difficult at the moment. This reflects the long period of range bound price action. Something gives soon.

Approaching a short-term cycle high, active today and into tuesday, which corresponds with the small blue T structure pointing to a high today, BUT could be drawn one day later and this would point to a short-term high on Tuesday…

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Steve Rushton September 9, 2016No Comments

S&P500 daily update

Literacy

Reading is the path to knowledge, and knowledge is the path to wealth.

On the 50th Literacy Day I would like to recommend a little book written in 1917:

One-Way Pockets: The Book of Books on Wall Street Speculation
by Don Guyon

A powerful little book that wastes no time at all in explaining just how to speculate on Wall Street, and is as relevant now as it was 99 years ago.

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Steve Rushton September 8, 2016No Comments

S&P500 daily update S&P500 signal

Short term Buy Signal at 2184

Price makes a short-term S/T Buy Signal at 2184, but upside seems relatively restricted.

Market seems to have shaken off that descending channel and the T volume oscillator turns positive confirming the prescence of the small cluster T.

The similar lows of the August 2 low and recent series of lows makes the unconfirmed possibility of a combination of the the 2 blue T structures, marked gray projecting highs for September 20.

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Steve Rushton September 7, 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

More Recommended

Reminiscences of a Stock Operator: Annotated Edition

by Jon D. Markman

With new commentary and Insights on the life and times of Jesse Livermore Reminiscences of a Stock Operator is the fictionalized biography of perhaps the most famous financial speculator of all time–Jesse Livermore. This annotated edition bridges the gap between Edwin Lefevre′s fictionalized account of Livermore′s life and the actual, historical events, places, and people that populate the book. It also describes the variety of trading approaches Livermore used throughout his life and analyzes his psychological development as a trader and the lessons gained through hard experiences.

“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