By: Jeff Cooper

Hit and Run Morning Stock Report: October 11th, 2022

The Great American Panic…On Deck?

The Solar Eclipse on August 21st, 2017 was called the Great American Eclipse.

Google it.

Some believe it was a Biblical event.

Five years almost to the day, the SPX struck a secondary high (August 16, 2022) and has been in a free fall since.

From August 2017 to August 2022 is 60 months-- a fractal of W D Gann’s Master 60-Year Cycle.

This is 5 years or 90 degrees or ¼ of W D Gann’s 20-year cycle.

The 20-year cycle is Gann’s Master Time FACTOR.

It ties to the Jupiter/Saturn conjunction.

THREE of these conjunctions give the Master 60-Year Cycle.

So this 60-month, or 5-year, period is a Square to the Great American Eclipse which cast a shadow over America.

Yesterday, we mentioned that 482  (for 4820)- the all-time high is square August 16th.

This underscores the significance of the August 16, 2022 peak.

That price high was 4325 (432).

One full square below 432 is 353 or 3530.

This ties closely to the 50% retrace of the March 23, 2020 Covid low to the Jan 4, 2022, ATH.

But we know from yesterday’s analysis that breakage below 359 is a red flag as this is 540 degrees down from 482.

Consequently, I think if 359 is lost with authority we likely get a plumb-line drop to the 350 (3500) region.

If and when this occurs it could be chillingly quick.

The SPX has been trying to stabilize at this 3590 region at 540 degrees off high; however, if this 540-degree square (a cube or true square) is lost, I think it must be said that it may be a premonition that the 50% equilibrium point at 3500 ish is not going to hold.

For new readers, 540 degrees is a true square or cube because a cube has 6 sides and angles of 90 degrees…90 X 6 = 540 degrees.

This should precipitate panic amongst those that have been assuming that a flush to 3500 should see a dramatic reversal but are not considering it may see a dramatic and abysmal abyss.

Including myself.

I too am guilty of the “it’s so far down in certain stocks, it looks like up.”

Sometimes you’ve got to turn the charts upside down to get your head screwed on correctly.

In other words, when one turns the chart of a stock that’s been going down for a while upside down…you just see the type of momentum that’s been in play up until late 2021.

It’s easier to visualize the momentum associated with a rocket launch than it is to ride gravity into oblivion.

Especially when stocks/companies represent the means to production in society.

But when price discovery is broken as it has been by MMT (ZIRP and QE) for a decade, price overshoots to the upside as well to the downside.

In sum, the VIX closed yesterday at 32.45 and is in an undeniable uptrend.

History strongly supports the concept that VIX is moving toward its top for this run which will correspond with the low for the SPX FOR THIS INTERMEDIATE TERM DOWNTREND.

That is not to be confused with the end of the bear market although a massive rally may follow the beaten-down glamours.

As well, while there is much history of Octoberfest for the Bears, whatever happens, this month is unlikely to be the PRICE low of this Intermediate Term decline.

Why? Because 90 days/degrees from the August 16th secondary peak in mid-November.

Additionally, 482 (the all-time high) is 180 degrees straight across and opposite mid-November.

That is SEVEN weeks before the end of the year and if we should get a price low or panicky low into mid-November, it should present a nice upside setup.

But one set up at a time.

For now, Mr. Market has not been able to scare the beJesus out of players based on the put/call ratio, which does not show a plethora of puts as yet.


It may be because players don’t want to buy insurance after the house has burned down.

It may be because there are still a lot of call buyers trying to front-run an oversold rally.

Either way, if call buyers pull in their horns, that may be enough to see the put/call ratio spike which is one of the prerequisites we’re looking for to define the end of the beginning of the end.