Trading the Line

Never short a dull market

A pause in the momentum – as to be expected. Nothing to see here. No change to the picture but the diagonal still in effect and the picture could change quickly.

Looking to close out February options today or tomorrow – a week before expiration, and replace with March position.

Steve Rushton February 13, 2014No Comments

S&P500 daily update

Yesterdays strong buy signal was bought with avengeance, again surpassing my expectations and proving the perma-bears to be very wrong yet again. We are now at a diagonal resistance 1819 so we should expect a bit of flagging perhaps down to 1800, maybe for a confirmation of the Buy signal or perhaps….

Steve Rushton February 12, 2014No Comments

S&P500 intraday update S&P500 signal

Intraday Buy Signal at 1809

Trading above 1804 (+5) is a strong buy Signal on the S&P 500.

Raising the stop and reverse to a close below 1798.

Steve Rushton February 11, 2014No Comments

S&P500 daily update

Tuesday smell the coffee

Cleared the first hurdle and now sitting inbetween support and resistance. Anyone's guess but the signal stays on Buy until proven otherwise. Next few days should provide a stronger signal either way.

Steve Rushton February 11, 2014No Comments

S&P500 daily update

Monday morning – wake and shake

Current short term buy signal exceeded on Friday, so it is possible that this is turnaround day.

We are back at the 55 line so above here we have a Buy signal (1804) and if rejected then we could see lower prices – a re-test of 1740 or even 1720.

Intraday we have support all the way down to 1759, but a close below 1772 is signalling a resumption of the Sell signal.

Steve Rushton February 10, 2014No Comments

S&P500 intraday update

February week one close

Lovely move up today – nearly 1800 again - that was quick! Must have surprised everyone and definitely surpassed my expectations.

There is some congestion here at 1800 -1810 – if we can clear that easily on monday/tuesday then new highs are possible again.

Steve Rushton February 7, 2014No Comments

S&P500 daily update

S&P500 Short term Buy Signal confirmed

Yesterdays decent rally of 21 points and close above 1767 confirms the expected short-term Buy signal. Notice the Sell-Buy-Sell action and 15 point spike-down on the 5th Feb leading to the move. Notice that gann line 3 is holding. And CCI confirms the move. A reversal is occurring if we see 1756 or lower intraday today or close below 1761. Note gann line 1. potential support.

Steve Rushton February 7, 2014No Comments

S&P500 intraday update S&P500 signal

Short term Buy signal at 1770

With the market moving above 1767 a Buy signal occurred with a tight stop of 1757. A close below 1757 would initiate a reversal of the position.

Steve Rushton February 6, 2014No Comments

S&P500 daily update

Get ready to Buy ?

It appears that the market is finding some support here at 1740ish at gann line 3. and could be considered a speculative Buy. Certainly a short-term long position above 1767 today with a close above the green line and a very tight stop at 1757 but needs a close above 1810 to confirm a more relaxed long-term buy.

Steve Rushton February 6, 2014No Comments

S&P500 daily update

Wednesday Feb 5

Not a huge bounce yesterday and still looking for stabilisation of the oscillator, perhaps a early warning buy signal from the CCI. It appears that gann line 3 may be holding, and a move below the grey boundary is often a good buying level. Caution is a good tactic after such a fast move down.

Short term Buy above 1772 which could target the mid at 1813, major support at 1720-30. a bounce at 1705-10 would be a good buying opportunity. A move below 1700 and there is real trouble.

Steve Rushton February 5, 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 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