By: Jeff Cooper
Hit and Run Bonus Reports: April 28, 2023
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Editor's Note: there are 2 bonus reports below. We hope you enjoy them!
Bonus Report #1: How The Square Of 9 Identified AMZN’s Earnings Explosion Before It Happened
On Thursday on the Hit and Run Private Twitter Feed, we recommended a long play on AMZN which was going to report earnings after the bell:
AMZN was already up sharply on the day at 109 but the Square of 9 Wheel indicated a target of 121-122 was on deck,
122 is 360 degrees up from the 81 low and ties to the current time window.
Place sq of 9 here
Notice that early May is 180 degrees straight across and opposite 81 and 122.
So we were in the time window for AMZN to be magnetized to be magnetized to 122 region.
And, as the above daily shows this ties to a prior pivot.
The market has a good memory.
The stars were aligned for a solid risk to reward longside play.
AMZN quickly exploded after reporting and members sold into the spike at 120 and 122.
Let’s look at how multiple time frame analysis backstopped the trade.
A weekly AMZN shows the solid resistance in the low 120’s corresponding to a declining tops line.
A 10 min AMZN for this week shows Thursday’s Opening Range Breakout (ORB) that telegraphed the Earning’s Explosion.
Bonus Report #2: Mother Of Bull Traps?
On Thursday the SPX spiked through the top of a little declining tops line (green) -- courtesy of a few mega-caps.
This came on the heels of breakage through the bottom of a larger rising bottoms line (red).
Will the real Mr. Break please stand up.
False up-spikes in bear markets are the normal expectation.
False shake-outs in bull markets are par for the course.
If we are in a Primary Bear Market, then the SPX should be carving out the big bull trap (trap the bulls).
Here’s the setup.
Trade above Thursday’s high TODAY will put the SPX in the daily Minus One/Plus Two sell positon.
This is because the 3 Day Chart is pointing down (Minus One) and two consecutive higher daily highs will satisfy a Minus Two.
360 degrees up from the March low is 4059.
450 degrees up is 4123.
A key 540 degrees up (a true square, a cube) is 4187.
This 4180 region ties to a backtest of the red Ghost Line.
Ghost Line because it’s been broken but may still exert its influence extending the line out where it may “haunt” the future price pattern.
Consequently, a Minus One/Plus Two sell setup in the 4180 region may be a big Bull Trap.
A big bull trap because of the entire structure since the January 2022 top and the Time Factor.
We’ll walk through this setup in Monday’s report.
Suffice to say that Intermediate Wave 1 down ended in October and Intermediate Corrective Wave 2 may culminate here.
It would be perfect of perverse of the Talented Mr. Market to complete a 6 to 7 month corrective Wave 2 with a false breakout prior to a powerful Intermediate Wave 3 drop.
Breakage back thru the rising green trend line is the first sign that this Bull Trap has been sprung.
This ties to the above 4123 “square”, 450 degrees up from the March low.
A failure back below 4059 (360 up from the March low) springs the trap for a possible doozy of a Sell In May.