By: Jeff Cooper

Hit and Run Morning Stock Report: April 3, 2023

The News Breaks With The Cycles, The Really Big News Breaks With Really Big Cycles

A week ago, Chinese president Xi Jinping and Russian president Vladimir Putin met in Moscow.

Their goal is to completely alter the international power structure and monetary system.

This is why they are getting ready for war.

This is why China has been unwinding holdings of U.S. Treasuries and buying gold.

The recent breakout in gold in league with cycles that marked the American and French Revolutions indicate

There is a strong possibility that war may be knocking on the door.

Recently we walked through the significance of the week around April 19 being a Date Of Destiny in the U.S.

Of course this time period is 180 degrees straight across and opposition October 19-28 when the two greatest crashes in the U.S. occurred in 1929 and 1987.

April 1930, 180 degrees/days following the Great 1929 Crash marked what the vast majority believed was a “Return To Normal”.

April 1988, 180 degrees/days after the October 1987 crash, the SPX was carving out a bottom which would propel the market higher for 3 years.

Roughly 3 years after 1929 the market had carved out a bottom—a test of the July 1932 bottom which would perpetuate a 3-year advance into late 1936/early 1937.

The time periods and the patterns were mirror-image fold backs.

In my nearly 40-year trading career, I have observed how markets play out in “3’s” -- on all time frames.

Despite the nearly 5-fold increase from 1932 to early 1937, it was not part of a new Primary Bull Market.

A new Primary Bull Market did not occur until 1949 (albeit some consider 1942 low the start).

March 2023 was THREE years from the March 23, 2020 Covid Crash low.

March 26-27, 2023 was also the culmination of a Gann Panic Window, counting from the important February 2, 2023 pivot high. The market respected the closing of the Gann Window with momentous momentum going into the end of last week.

The fingerprints of Quarter-end Window Dressing and Option Expiration were all over the window’s closing subsequent rally into Friday.

So like the 6-month period after the 1929 crash and the 6-month period following the so-far Bear Market low in October 2022, April will be the umpire.

This is in league with the 3 year periodicity from 1929 to 1932 and 1987 to 1990.

It must be noted that 1990 was the start of an important War Cycle.

In August 1990 Saddam Hussein invaded Kuwait starting the Gulf War.

The market topped in 1990 on July 13.

This was 22,228 days from the September 3, 1929 top of tops.

Is that an important number?

If you divide 22,228 by a circle/cycle of 360 you get 61.74 or rounding 61.8 a Fibonacci fractal which also ties to Gann’s Master 60-Year Cycle.

The cycle after the 1929 crash with the “return to normal” in April exerted its downside influence in April 1930.

The opposite occurred 6 months following the October 1987 crash.

We have to be mindful of the Rule of Alternation.

That means markets may be more synergistic with the period from April 1930.

Interestingly, it is 58 years from the 1929 crash to the 1987 crash.

On my Square of 9 Wheel, one “square” or cycle up from 58 is 93.

As noted above, we are 93 years from April 1930.

Remarkably, 93 “squares” April 19/20 when we get a powerful solar eclipse followed by a lunar eclipse on May 5.

WD. Gann believed eclipses or “Passovers” were markers of market activity and magnified their direction.

The synergy between these natural cycles and market cycles promises to exert powerful influence in April 2023.

The Diamond pattern on the SPX underpins the cycles at hand.