By: Jeff Cooper
Hit and Run Trading Morning Report - September 19, 2023
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God Geometrizes
We’ve been outlining the possible synergies between 1929, 1987 and 2023.
While Monday was not a Black Monday, the market is not a fine Swiss watch.
Last week we noted the fact that in 1929 the North Node of the Moon was in a position it has not been in until 2023.
Any discussion of the moon revolves around the North Node.
As it happens the North Node of the Moon currently resides at what W.D. Gann referred to as his
‘Zero Point’, zero degrees Aries.
The Zero Point is March 21-23, the Spring Equinox, what Gann referred to as the natural beginning of the year.
He went on to say that if you can find the Zero Point, you can measure anything.
Every March 21st -23rd, the Sun is at zero degrees Aries, the beginning of the zodiac, the cycle of the sky.
So currently we have the North Node of the Moon ‘sitting on’ zero degrees Aries or the Sun.
Of course the Moon and the Sun are what produce an eclipse.
Hence any eclipse in this period is exemplified, exalted, i.e. packs a greater punch/vibration.
The North Node currently at zero Aries (thru late November) at March 21st is 180 degrees straight across and opposite September 22 and 23rd.
These dates could see intense volatility in the market and or intense events globally and for the U.S. which in turn affects markets.
Interestingly, November 23rd is the Master 60 Year Cycle anniversary of JFK’s assassination.
Arguably, the U.S. has not been the same since the assassination.
Let’s take a look at 1929, 1987 and 2023 as to eclipses in the fall.
In 1987, there was an eclipse on October 7th. That got the downside ball rolling until the crescendo on October 19th.
In 1929 there was an eclipse on November 1st. The Great Crash was 3 days earlier on October 29th (there was a first crash 10 days earlier on October 24th).
When an Event occurs virtually directly on an eclipse it has powerful ripple effect around its anniversary. It’s a Shock Wave. 1929 was such a Shock Wave.
In 2023 we have an eclipse on October 14th.
The presumption is that could be a trigger point within 3 weeks or 3 days either direction.
As an example of how these eclipses can vibrate forward and backward in time like a “Tunnel Thru The Air”, October 13th, 2022 was the major low following the late 2021/early 2022 market highs.
A vibration is a tunnel thru the air.
Long time members will remember that the 3491 (349) SPX low on October 13, 2022 was a time/price square-out.
Consequently this October 14th perfects a square out with the October 13th, 2022 low 360 degrees later. The period from 3 weeks before to 3 weeks after should be intense.
It should magnify whatever trend is in progress.
Succinctly, the October 14th, 2024 eclipse squares the low of the bear market to date.
This underscores the significance.
At the same time, to recap, the North Node sitting on March 21st in the powerful zero Aries position is opposite September 22.
This entire 3 week period should be bracketed.
But wait there’s more.
We’ve commented many times on how we are 94 years from 1929.
On the Square of 9 Wheel, 94 points to mid-July, the time period where markets topped this year…
The top for 2023.
94 is straight across and opposite 349 (3490 low) which means that the mid-July high region is opposite the low.
“God geometrizes.”
-W.D. Gann
As we pointed out at that time, July was cubed 540 degrees from the January 2022 peak.
The NDX topped on July 19th this year.
October 19th is 90 degrees forward and squares the high of the year.
The SPX topped on July 27th and October 27th is 90 days/degrees forward.
This ties to the 94th anniversary of the Oct 29, 1929 Crash.
However, remarkably, 94 is precisely square October 14th. THE ECLIPSE.
The fact that the market pivoted from a low one year prior potentially underpins the geometry of this 1929 vibration.
Measuring from the October 13, 2022 low (on the 1 year cycle) and March 2023 on the 180 day/degree cycle we see that support this September/October ties to the low 4200 SPX region…a cube of 540 degrees down from the July high.
Breakage below the Maginot October/March trend line around 4200 opens the door to 3828 which is another 540 degrees down (or 1080 degrees from the July peak).
This of course ties to the March 2023 low.
If an Event hits can the SPX come full circle…back to the point of origin of this rally, the March 2023 low?
Could the event be the massive short position in the bonds which is based on an arbitrage/hedging strategy?
I can’t help but wonder if the current “free-money” arbitrage on bonds which has set up this massive short position similar to the popular Portfolio Insurance in 1987 which perpetuated the crash?
“The current build-up of leveraged short position in US Treasury futures is a financial vulnerability worth monitoring because of the margin spirals it could potentially trigger. Margin deleveraging, if disorderly, has the potential to dislocate core fixed-income markets.”
-Bank of International Settlements
TLT will sniff out an Event.
Below are an hourly, daily and weekly TLT
An hourly TLT shows a possible Trap Door/Bear Trap setup.
A sustained move above the horizontal 93.60 line triggers the setup.
Note this dovetails with the declining red trendline and the 50 hour moving average.
What if the impulse occurs on a gap like August 23rd?
Go with it.
A daily TLT shows a declining blue trend line at 94.50 above which theoretically opens the door to 98.
Pulling back the lens to check a weekly TLT a potential weekly Rule of 4 Breakout is triggered at 100.
90 degrees up from the recent 92/93 low is 102.
If a massive squeeze should play a Rule of 4 above 100 and 90 degrees up above 102 opens the door to the unthinkable.