Trading the Line

Looking to September

Market still finding some strength left and holding up above the mid channel.
Looking for an attempt at 2200 during the next week or so, but preparing for a gasp high and probably a sudden pullback.

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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 August 21, 2016No Comments

S&P500 daily update

August expiration

Expect the usual expiration day shenanigans as traders re-position and rollover contracts to the September cycle.

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Steve Rushton August 19, 2016No Comments

S&P500 daily update

Helium

From Wikipedia, the free encyclopedia

The first evidence of helium was observed on August 18, 1868, as a bright yellow line in the spectrum of the chromosphere of the Sun by French astronomer Jules Janssen. Helium has some interesting industrial applications including cryogenics and in particular in the cooling of superconducting magnets such as in MRI scanners. In scientific research, it is important to researchers studying quantum mechanics,superfluidity and superconductivity, produced in matter near absolute zero.

Stopped out in early morning weakness, but the move back above 2178 re-confirmed the previous Buy Signal.
Market thinking about rolling over but maybe not just yet.
Looks like we now have the room to attempt new highs again into August expiration and the end of the month.

Breadth and complacency indicators still flashing warning signals suggesting that the summer rally may end abruptly soon, probably at the end of August in line with the red T structure and its main arm from the April peak…

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Steve Rushton August 18, 2016No Comments

S&P500 daily update

Cracks appearing

Not quite a cover signal at the close but very nearly, as the short term cycle peak projection does its stuff.
T volume oscillator turns negative again.
OSC 'Sell signal' indicating slowing of momentum
Move below the rising Gann line that was previously support.

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Steve Rushton August 16, 2016No Comments

S&P500 daily update

Rio rally

Rio rally continues and the market holds above the important rising gann line.
T volume oscillator turns positive again, but the OSc 5,35 oscillator remains neutral..

Short term cycle peak projection for today…

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Steve Rushton August 16, 2016No Comments

S&P500 daily update

Doji time

Market showing resilience but makes a Doji on the rising trend line as we move into August expiration week.

And Put/Call ratios flash a warning signal…

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Steve Rushton August 14, 2016No Comments

S&P500 daily update

Glorious Twelfth

From Wikipedia, the free encyclopedia

The Glorious Twelfth is a term used usually to refer to 12 August, the start of the shooting season for red grouse (Lagopus lagopus scotica), and to a lesser extent the ptarmigan (Lagopus muta) in Great Britain and Northern Ireland. This is one of the busiest days in the shooting season, with large amounts of game being shot

2nd major arm of the red T structure complete and new all time highs.
Good to see the support line held and this bodes well for the expected continued move higher into late August.

As mentioned yesterday we currently have a cycle high projection and a 2nd one coming in on tuesday, so we may see a pullback starting today or early next week.

It will also be interesting to see how the rising wedge plays out…

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Steve Rushton August 12, 2016No Comments

S&P500 daily update

Sons and Daughters

August 11 is Son’s and Daughter’s Day – the perfect opportunity to set aside some time to reflect on the joy that our children bring to our lives.

Mr market is trapped between the rising Gann angle from the June 7 low to the August 2 low and the resistance line above the 2 recent tops, and a squeeze is occurring. Support held yesterday, but only just.

And I am expecting a short-term high here as projected by the red T structure, and the smaller blue T structure.

We also have 2 separate cycle peak projections coming into play today and into tuesday 16th.

And the Magic T volume oscillator turns back down…

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Steve Rushton August 11, 2016No Comments

S&P500 daily update

More Skew

Skew moves above 135 indicating that there is more risk becoming apparent in the marketplace…
This last occurred in mid June.
Still pushing up against the resistance line at 2187, and the squeeze becoming tighter.
Possible short-term top in the next day or so…

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Steve Rushton August 10, 2016No Comments

S&P500 daily update

Fat Man

From Wikipedia, the free encyclopedia:

The United States, with the consent of the United Kingdom as laid down in the Quebec Agreement, dropped nuclear weapons on the Japanese cities of Hiroshima on August 6th and Nagasaki on August 9th 1945, during the final stage of World War II. The two bombings, which killed at least 129,000 people, remain the only use of nuclear weapons for warfare in history.

The market stalls at the upper bollinger band and the bands squeeze tighter. Expect a volatile move shortly.

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Steve Rushton August 9, 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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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