By: Jeff Cooper
Hit and Run Morning Stock Report: January 4th, 2023
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Separating the Price Meat From the Timing Bone: The Incomparable Square Of 9 Wheel
There’s a fork in the road between following the trend and the conceptually correct notion that on Wall Street what everybody knows isn’t always worth knowing.
This is particularly true when the short-term trend is jello.
It’s easy to say the trend is down and “I’m going to be patient” and let it play out, but traders don’t roll that way.
Timing is everything as the cliché goes. But, cliches are clichés because they are so true.
How do we separate the price of meat from the timing bone?
The Square of 9 never ceases to amaze and prove its value…, especially at the most critical of turns.
Its value lies in its unique ability to integrate Time and Price.
The all-time QQQ high was 408.71 on November 22, 2021.
The Square of 9 image below shows that January 3 squares out with 408.71
Last year's QQQ low was 254.26 on October 13th.
The next image shows that 254.26 is 180 degrees straight across and opposite November 22nd-- the all-time high.
So the date of the ATH “points to”/ vibrates off the low for the bear…so far.
Time price proof is in the time pudding: On October 13th, 2021, the Q’s left a large range Key Reversal Day.
Time points to price; price points to time in keeping with W D Gann’s Law Of Vibration.
90 days/degrees later is January 13th.
The market is not a fine Swiss watch.
Somewhere in the next week or so, Mr. Market should reveal the cards he is holding so close to his chest.
Mr. Poker Face should turn put up or shut up.
On November 4th, QQQ tested the October 13 Key Reversal Day and rallied sharply where it reversed from just below its 200-day moving average.
On the heels of elevated tax loss selling QQQ dropped back into the same “test” region last week.
It doesn’t “look” constructive, but it may be a Test of a Test Pattern.
Likewise, the SPX doesn’t “look” constructive. It appears to be caught in a Bear Flag with Tuesday’s early pop-up opening faltering with another early gain turning into a sharp reversal.
In other words, the drive to our key 3900 region was knee-capped.
That said, the SPX came back in the last hour and I can’t help but wonder if the 2nd mouse gets the 3900 cheese.
An equivalent region for the QQQ to 3900 SPX is 275/277 where there is a 20.50-day ma Bowtie.
This also ties to a broken trend line connecting the October low and the early November low.
Tomorrow's report will give my big-picture forecast based on my cycle work.