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02/25/2020

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A huge drop overnight triggering a Sell Signal on Sunday night below 3316.

An initial bounce is sold into for a ragged decline to the lower edge of the gray channel and lower bollinger band before an attempted recovery, which is also sold into in the last hour.

Back at the January lows and looking vulnerable to further declines whilst price attempts to stabilize.

Chart of S&P 500 for 25 February 2020

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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 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.

Posted at 09:34 AM in S&P500 daily update |

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“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

STATUS

LONG TERM (Monthly): BEARISH
MEDIUM TERM (Weekly): BEARISH
SHORT TERM (Daily): S/T BUY SIGNAL

T VOLUME Osc: POSITIVE
OSC: POSITIVE

2025 POSITIONS

(All numbers refer to SPX)
S/T BUY Signal at 5644 on 19 March
COVER Signal at 5624 on 18 March
S/T SELL Signal at 5600 on 18 March
COVER Signal at 5624 on 18 March
S/T BUY Signal above 5625 on 14 March
COVER Signal at 5573 on 14 March
S/T SELL Signal below 5765 on 10 March
COVER Signal at 5782 on 07 March
S/T SELL Signal below 5823 on 03 March
COVER Signal at 5833 on 05 March
S/T SELL Signal at 5914 on 03 March
COVER Signal at 5938 on 03 March
S/T BUY Signal above 5967 on 03 March
COVER Signal at 5913 on 28 February
S/T SELL Signal at 6060 on 21 February
COVER Signal at 6101 on 21 February
S/T BUY Signal above 6043 on 12 February
S/T SELL Signal at 5967 at 6020 on 12 February
S/T BUY Signal at 6061 on 10 February
COVER Signal at 6041 on 07 February
S/T BUY Signal at 6049 on 05 February
COVER Signal at 5960 on 03 February
S/T SELL Signal below 5967 at 5960 on 03 February
COVER Signal at 6041 on 31 January
S/T BUY Signal at 6064 on 30 January
COVER Signal at 6039 on 29 January
S/T BUY Signal at 6062 on 28 January
COVER Signal below 6050 at 5965 on 27 January
S/T BUY Signal above 5878 at 5925 on 15 January
COVER Signal at 5835 on 14 January
S/T SELL Signal at 5811 on 14 January
COVER Signal at 5835 on 13 January
S/T SELL Signal below 5887 at 5875 on 10 January
S/T SELL Signal at 5891 on 08 January (Unconfirmed)
COVER Signal at 5915 on 08 January
S/T SELL Signal at 5891 on 08 January
S/T SELL Signal at 5901 on 07 January (Unconfirmed)
COVER Signal at 5925 on 07 January
S/T BUY Signal at 5928 on 03 January
COVER Signal above 5900 on 03 January

HISTORY

2024 POSITIONS

2023 POSITIONS

2022 POSITIONS

2021 POSITIONS

2020 POSITIONS

2019 POSITIONS

2018 POSITIONS

2017 POSITIONS

2016 POSITIONS

2015 POSITIONS

2014 POSITIONS

2013 POSITIONS

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

CONTACT ME

  • tradingtheline@gmail.com

TOOLBOX

T Theory Volume Oscillator
Terry Laundry's Magic T Volume oscillator

WSJ Market Data Center
Advanced / Decline Volumes

ARMS Index (TRIN)

SKEW
Black Swan indicator

CPCE
CBOE Equity PUT/Call Ratio

CPC
CBOE Total PUT/Call Ratio

NYMO
NYSE McClellan Oscillator

VIX
Volatility Index

VVIX
Volatility of Volatility Index

RECOMMENDED WEBSITES

Bob Karrow: Stock Market Observations
A fantastic resource with great insights from Bob Karrow and includes an extensive archive of Terry Laundry T Theory observations

GUNNER24 Forecasts
Fascinating Gann based analysis

Finviz
Very useful portfolio and stock screener

Stockcharts
Fantastic Charting resource

RECOMMENDED READING

Martin Schwartz: Pit Bull: Lessons from Wall Street's Champion Trader
Martin Schwartz: Pit Bull: Lessons from Wall Street's Champion Trader

The first light really went on when reading Pit Bull by Marty Schwartz and if you haven’t read it I could not recommend it more highly. Marty Schwartz talks about Green Light / Red Light and Terry Laundry’s Magic T Theory - both very important concepts.

Jack D Schwager: Market Wizards: Interviews with Top Traders
Jack D Schwager: Market Wizards: Interviews with Top Traders

"Market Wizards is one of the most fascinating books ever written about Wall Street. A few of the ′Wizards′ are my friends—and Jack Schwager has nailed their modus operandi on the head." – Martin W. Zweig, Ph.D., Editor, The Zweig Forecast

I thoroughly recommend all of Jack's books.

Victor Sperandeo: Trader Vic: Methods of a Wall Street Master
Victor Sperandeo: Trader Vic: Methods of a Wall Street Master

A really insightful book. Great section on economics.

"Victor Sperandeo is gifted with one of the finest minds I know. No wonder he′s compiled such an amazing record of success as a money manager. Every investor can benefit from the wisdom he offers in his new book. Don′t miss it!" - Paul Tudor Jones Tudor Investment Corporation

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Reminiscences of a Stock Operator: Annotated Edition by Jon D. Markman
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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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