By: Jeff Cooper
Hit and Run Morning Stock Report: November 28th, 2022
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A Big Cycle Is Hitting
Since 9 is the highest digit, it is very important for resistance levels in time and space.
The circle of 360 degrees, when divided into geometrical parts, “proves the reason for all resistance levels and measures time and space very accurately.
When dividing the circle by 2 we get 180, which is the strongest resistance level because it is the gravity center or ½ point. It equals 180 months or 15 years which is ¾ of the important 20-year cycle and ½ of the 30-year cycle, which is very important.
The 20-year cycle is 240 months. However, Gann often wrote about “2 periods of time on the side” and “lost motion.”
I take this to mean that time doesn’t turn trends on a dime. It is more like the turning of a tanker.
The tanker of time.
Given the above, adding 2 months to 240 months we get 242 months.
There are 24 hours in a day so this is synergistic with 24 weeks, months, and the aforesaid 240 MONTHS…
Remember the ancients used to keep time by the moon while today we use the sun… so natural divisions of the circle in months/moonths is important.
Let’s take a look.
242 months is 20 years and 2 months.
From the important April 1942 low to the June 1962 low is 20 years 2 months.
From June 1962 to the major August 1982 low is 20 years 2 months.
From August 1982 to the major October 2002 low is 20 years 2 months.
That suggests the possibility of an important low in December 2022.
However, the SPX has rallied over 500 points since it reached its “gravity center” of 3500 on October 13th.
To recap, this gravity center is the mid-point between the March 2020 low of 2192 and the January 2022 peak at 4818.
There is a possibility that the cycle will invert to make a high of some degree in early December…
OR the market will get hit hard ala December 2018.
So we working in the wheelhouse of time and price.
Interestingly, there was a minor high on December 2nd, 2002 before the market dropped into March 12, 2003, making a slightly higher high than its October 2002 low.
The two most important turning points in the SPX since 2020 are the March 23rd, 2020 crash low and the January 4th, 2022 all-time high.
We can consider this a cycle.
It is a period of 652 calendar days.
Half this cycle is 326 days.
326 days from the January 4th, 2022 ATH is November 26,2022. This past Saturday.
Last Friday or today could be turning points.
One-half 326 is 163.
163 days from the Jan 4th ATH is June 16th.
This was a major low at the 3636 regions which gave rise to a two-month rally into 4325 on August 16.
163 is synchronous with 1.618.
Tomorrow’s report will highlight the SKEW (which reflects the number of out-of-the-money puts being bought) compared to the two weeks before the Lehman Crash in 2008 when the SKEW ramped.
In the last week, SKEW has ripped higher as well.
Does the smart money know something? Is FTX the spark that launches the unraveling of 1000 derivative ships?