Trading the Line

Labor

All numbers refer to SPX

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The market is back in the mode of selling strength since the 16 August high with yet another very rapid reversal at the end of the summer. A quick look up on Friday triggering a Cover Short Signal at 3997 and just triggering an S/T Buy Signal at 4017 before being met with strong selling and a rapid decline reactivating the Sell Signal at and below 3997.

An S/T Sell Signal at 3997.

Dangerous market conditions.

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The strong Buy Signal just after the secondary low on 14 July set up the recovery into the projections for a high from the T structures with price regaining the important 4300 area, albeit only temporarily.

4300 has become a pivot with previous important support becoming important resistance as we see price dropping away again into the end of the summer.

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The T volume oscillator ¹ is again collapsing with price looking for support and indicating a distinct lack of buying power since the mid August high.

The market is looking for the next low from which to stage its next advance. This may be in the process of happening with the important 3900 area being challenged and tested. We should continue to expect rapid movement in either direction and selling into strength as the market looks to stabilize whilst making a decision on future longer term direction.

We are looking for price to move up (and hold) above the previous price high and preferably close at or near the high of the day, and for the T volume oscillator to move upwards through the declining cash build up line ² line to indicate the prescence of a new T structure.

¹ The T volume oscillator is an indication of Buying Power within the market as a whole
² The cash build-up line is a declining line drawn above a series of lower highs made in the oscillator.

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The weekly chart shows the rapid decline from the 4300 area with the collapse of the T structure. The weakness is suggesting another re-test of the May – July lows – 3638-3800 and possibly lower in due course.

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The monthly chart show the ongoing collapse of the Mega T structure (and its extension higher into late 2021) as price comes to terms with the over-exuburance of 2020 and 2021 and attempts to find support. The continued decline suggests further weakness for now and we should therefore expect ongoing volatility within the context of a long term bearish market.

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2022 continues with price dropping sharply from the top of a range that has become increasingly expansive since the move above 2500. With price again below the extremely volatile range from 4100-4600 we can only assume that this expansive price action will continue – in both directions – and that the important 2020 highs around 3385 and 3500 may still become the target. This is a Brave New World and we should trade accordingly.

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Regardless of whether the market can move higher or whether significant lows are ahead of us, the simplicity of the proprietary price based S/T Signalling System will continue to keep us on the correct side of the market, currently indicating a Buy Signal since 15 July at 3828.

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If you would like to learn more about the S/T Signalling System , and using T Theory in your trading, please get in touch.

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Be prepared for what is coming next and trade with confidence:

Sign up here for daily analysis with the updated Buy / Sell trigger levels being generated by the Trading the Line S/T System before the market opens. Trading the Line Membership – includes Explanatory Notes (pdf), Notes on Day Trading (pdf) and End of Day Snapshot of Day Trading Entries.

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 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 5, 2022No Comments

S&P500 intraday update S&P500 signal

S/T SELL Signal at 3997

Early strength triggering a Cover Short Signal at 3997 with a push up to 4018 triggering an S/T Buy Signal at 4017 before being met with strong selling and a rapid decline reactivating the Sell Signal at and below 3997

Sell Signal at 3997.

…

Steve Rushton September 2, 2022No Comments

S&P500 daily update

Brocard

Another look lower is met with buying for a strong afternoon finish.

Sell Signal continues for now.

Steve Rushton September 2, 2022No Comments

S&P500 daily update

Wattle

An early look higher into 4010 is met with choppy selling.

Sell Signal continues.

Steve Rushton September 1, 2022No Comments

S&P500 daily update

Aidan

More selling, into a morning low before attempting to stabilize at 3970

Sell Signal active.

Steve Rushton August 31, 2022No Comments

S&P500 daily update

Pandora

An overnight drop is met with some buying at 4030 and then 4020 for an attempt to stabilize after Friday's decline.

Sell Signal still active.

Steve Rushton August 30, 2022No Comments

S&P500 daily update

Caput

Very sharp selling in early action triggering a Cover Signal below 4170. A very quick rebound to 4200 before resuming the selling for the remainder of the day, triggering a Sell Signal at 4155.

Sell Signal active.

Steve Rushton August 29, 2022No Comments

S&P500 intraday update S&P500 signal

S/T Sell Signal at 4155

Very sharp selling in early action triggering a Cover Signal below 4170. A very quick rebound to 4200 before resuming the selling for the remainder of the day, triggering a Sell Signal at 4155.

Sell Signal at 4155.

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Steve Rushton August 26, 2022No Comments

S&P500 daily update

Endeavour

Opening above the Cover Short Signal line and quickly buying for a push to 4183 for a touch of the Buy Signal line before dropping back below 4161. More buying in afternoon action resolves higher pushing up strongly through 4182 into the close.

S/T Buy Signal at 4182.

Steve Rushton August 26, 2022No Comments

S&P500 intraday update S&P500 signal

S/T Buy Signal at 4182

Opening above the Cover Short Signal line and quickly buying for a push to 4183 for a touch of the Buy Signal line before dropping back below 4161 triggering a Cover Signal. More buying in afternoon action resolves higher pushing up strongly through 4182 into the close.

S/T Buy Signal at 4182.

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Steve Rushton August 25, 2022No 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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“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.”
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“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.”
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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.
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The mind is neither either nor or.
The real center of an empty sphere.”
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