Trading the Line

strength above the 55

A strong push above the 55 EMA which is always a good sign.
Look for continued strength into Friday's expiration and into a peak on the 21st.
If we can clear the Mid-point currently at 1953, then an L/T Buy Signal will occur.
Failure at that level could result in a decline and re-test of the lows.

Steve Rushton August 14, 2014No Comments

S&P500 daily update

pause or pullback

Monday's peak and yesterdays slight weakness is consistent with the T structure, and maybe just another Buy entry.

But there is always the possibility that it was entry for another leg lower.
Watch any action around the rising trendline for evidence either way.

My gut feeling is for a gradual grind upwards to 1995 for a re-test at September expiration.

Steve Rushton August 13, 2014No Comments

S&P500 daily update

Onwards and upwards?

Assuming that the buy signal remains intact Short-term target 1955 for friday expiration.

Found some resistance at the 55EMA and made a short term peak.
Any pull-back should be met by strong buying.

Oscillator and T theory volume oscillator making a buy signal.

Steve Rushton August 12, 2014No Comments

S&P500 daily update S&P500 signal

Buy Signal above 1929

With Friday's relief rally (after Futures sell-off overnight) the market made a Buy Signal during the last few hours and closed above 1929.

A rally to the mid-line at 1955-8 is now on the cards, and possibly a move back to the all-time high for a second look (maybe a kiss goodbye?)

Get is still saying resistance at 1944 and possible lowere low but the T structure is suggestive of a rally into early October. A new high in the 2020's – not out of the question. Certainly if the Russian problem is over?

Steve Rushton August 11, 2014No Comments

S&P500 daily update

still looking down for support

OK we lost the potential support at the 1920 level, so we should expect to see some fresh support around 1900 on the S4 line. below that – even more significant support at 1870-1880 on S5.

Previous resistance should now be support. Looking for the possibility of some kind of releif rally into next friday's expiration.

Steve Rushton August 8, 2014No Comments

S&P500 daily update

time for a rally?

Short term low may be in – indicated by the first ellipse. (re-trace of move from May 15)
and just about holding the support line S3

But potential for a lower low – 2nd ellipse (re-trace of move from April 11

Keep an eye on yesterday's low – 1911.5 – as a line in the sand.

Short-term Buy above 1936, confirmed above 1940.

Steve Rushton August 7, 2014No Comments

S&P500 daily update

looking for a low, maybe

Looking for a low but perhaps not there just yet

If we can't hold this line at S3, then a drop to 1880 may well be on.

Steve Rushton August 6, 2014No Comments

S&P500 daily update

stabilising?

A nice rally off the S3 support line, but didn't make a Buy Signal just yet – so lets see if we stabilise now or whether the market need to find a lower low at S4 or S5.

The ellipse tool is still looking for sideways and downwards, and the T thery volume oscillator is suggesting a few more days of upside, but the 70 day low to high may be suggesting yesterday / today / tomorrow as a top – perhaps a dead cat bounce then.

Steve Rushton August 5, 2014No Comments

S&P500 daily update S&P500 signal

Oops Argentina!

Yesterday's non response to the Fed + the overnight selloff (Argentina probable default) indicate that a Sell Signal should occur today at the open. It is clear that we need a pullback – but how far down?

Initial support indicated by MOB is 1945 at the 55EMA, then 1935, then 1920s.

As sell signals can rapidly develop into Buy signals at lower levels, I have drawn a possible T structure that could develop out of this, and will re-draw daily.

Steve Rushton July 31, 2014No Comments

S&P500 intraday update S&P500 signal

Sell the news

Blow out news from TWTR, X and GDP
Sell the news and wait for the FED.

A Sell signal is developing today after the early pop-up and drop – currently at 1963.5 at midday
this is on a major trendline from the April low and IF it holds today we could get a rally back to the highs (and beyond)

The last 2 Fed rallys were both about +50 points from similar squeezes – 2015 or 1915?
By end of day we should have a confirmed signal eitherway.

Steve Rushton July 30, 2014No 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 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.

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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