By: Jeff Cooper
Hit and Run Trading Morning Report - October 13, 2023
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20 Day Moving Average Tested Again
“Darkness at the break of noon
Shadows even the silver spoon
The handmade blade, the child’s balloon
Eclipses both the sun and moon
To understand you know too soon…”
-It’s Alright, Ma I’m Only Bleeding, Bob Dylan
Yesterday’s Treasury auction pulled the plug on everything…stocks, gold and bonds.
There is a U.S. Treasury auction on October 18th, the same day as VIX Options Expiration.
Treasuries are the Fed’s ‘jewels’. To save Treasuries, they may crash stocks.
Just like 1987.
There are two big catalysts like blades at the market’s throat currently:
1) The bond market in disarray that trades like a broken IPO
2) The Mid-East
Let’s recap the context of these catalysts.
I have been outlining synchronicities between 1929 and 2023 for several months.
For example, 1929 is 94 years ago.
94 is square October 14th, Saturday.
This is also a day where we have a solar eclipse.
In 1929 the crash occurred days from a solar eclipse.
Remember the market was already in a weakened position by late October 1929.
While we did not see a crash on the same 55/56 day count from the high this year as occurred in 1929, we also did not see a Selling Climax yet from the July 27th, 2023 high.
Whatever happens in October, I think it may be the precursor to a November debacle.
This is because the Mars/Uranus Crash Cycle window opens on November 11th.
The symbolic 11/11.
At the same time the Master 60 Year Cycle from JFK’s assassination is on November 22, 2023.
Something should shock America in that timeframe.
On the Square of 9 using the number grid as years finds that ‘1929’ is 180 degrees straight across and opposite November 20th.
Likewise, in the same manner, ‘1987’ squares October 29th, the crash in 1929.
The year ‘2023’ points to November 10th.
There is another reason why 2023 may see an Event.
George Washington was inaugurated in 1789.
That was 234 years ago.
On the Square of 9 Wheel, 1789 and 234 vector/vibrate off each other.
Yesterday, the SPX reversed from a near perfected Hidden Dragon sell signal (an up inside signal, an up inside pattern. It missed qualifying because the index exceeded Tuesday’s high by 39 cents missing a ‘genuine’ Hidden Dragon.
Be that as it may, the market is not a Rolex.
An hourly SPX shows from the 9/27 low, the SPX carved out what looks like a textbook A B C retracement.
The implication is SPX has a date with the bottom of the purple channel at 4270.
Remember there is a perfect Measured Move down from the July SPX high at 4270.
The first leg was 271 points to August 18 low.
From the September 1st high another leg down of 271 points gives 4270
In sum, the Hidden Dragon sell saw a rug pull that tested the 20 day ma again.
Below the 20 day opens door to 4270.
Below 4270 opens the door to the 4000 region shown earlier this week.
Below 4000 opens the gates of hell.
We’ll show how low hell could be in Monday’s report.