By: Jeff Cooper

Hit and Run Trading Morning Report - September 12, 2023

Hey DOJO Where You Going With That Gun In Your Hand…

This has been the worst year for US Treasuries on record.

It’s no coincidence that it also saw the highest Central Bank gold buying streak in over a Fibonacci 55 years.

As Treasuries political and debasement risks rise it should not be a surprise that demand for gold  amongst the ‘insider’ CB’s has been soaring.

The trend should accelerate as institutions and the public enter the buying in the midst of a commodity super cycle.

Stuff will shine.


US Treasuries just experienced 3 consecutive years of loss…the worst in the nation’s history.

The rising yields are as much if not more about a lack of “full faith and credit” in the US government as it is about inflation:  underlying distrust of the government drives demand for gold.

Instead of parking savings in US Treasuries, increasing numbers of countries are putting their savings in gold.

There is a strong likelihood that soon institutional investors and the public will follow.

So far this year Central Banks have bought about 25% of global production.

China is one of the largest gold producers and has dumped over 25% of its huge holdings of US Treasuries since 2021.

See a trend here: China buys about 25% of gold production while at the same time dumping 25% of US Treasuries.

The presumption is the global trend of buying gold and selling US Treasuries to accelerate.

It happens slowly then all at once.

Trends crawl before they walk, walk before they run and run before they sprint.

Since China entered the World Trade Organization in 2002 there has been a shift from a dollar centralized world into multi-polar world.

This is exemplified by the expanding BRIC’s with their dominance in energy and commodities

The comparisons to the decade of the 1970’s when energy held the US hostage are undeniable.

As well today’s extraordinary narrow breadth mirrors the Nifty Fifty stocks of the early 1970’s.

Of course gold exploded in the 1970’s.

Despite higher rates and a stronger dollar, gold has been holding its own.

What happens when the lid comes off?

September is a major potential turning point being 144 Fibonacci months from the major September 2011 peak.

And this is not a high. It’s a high level consolidation/coil as gold is essentially at the same region it was 12 years ago.

Gematria is the science of numbers and letters.

Square of Nine= 144

The Secret Key= 144

Do the math.

144 is the TWELFTH number in the Fibonacci sequence.

It is a “square” as 12 X 12 is 144, the only Fibonacci number to be a square.

Many people laugh at some of these Gann techniques, but they also lose their money in the market.

Jupiter is the largest planet in our solar system and has a 12 year cycle.

144 years ago in 1879 the Panic of 1873 ended.

I can’t help but wonder is a 6 year mirror image foldback is playing out.

6 years ago was the ramp into the end of 2017 the culmination of which started a period of intense volatility.

Is it possible the last quarter of 2023 sees a break to the bottom of this 6 year trend channel at 4100 SPX?

The major pivot in GLD is 150/151 which on my Square of 9 Wheel is straight across and opposite Gann Day, the Autumnal Equinox on September 21-22 (note the horizontal green line).

Tomorrow’s report will update the major long term gold cycles.

In the last week we saw China attack AAPL. I don’t know how else you can characterize it.

Friday TSLA was trading as if it was next on Xi’s hit list.

But then out of the blue comes a TSLA upgrade by Morgan Stanley---a new DOJO supercomputer.

It must be said that Morgan holds all the Twitter debt and all of Elon’s margin loans.

DOJO rhymes with ROBO…as in Robo Taxi’s on deck in 2019.

I bring up TSLA because nearly all of Monday’s 30 point SPX gain was on the back of one stock…TSLA.

TSLA gapped open 16 points at 264.

After watching the behavior, we alerted a long swing entry on the Hit and Run Private Twitter Feed.

We trimmed on the way up exiting the last piece at 274.

Thank you Square of 9 Wheel.