By: Jeff Cooper

Hit and Run Trading Morning Report - December 15, 2023

Fibonacci

I have read all the books and works of W.D. Gann.

Nowhere do I recall him mentioning “Fibonacci”.

Gann went to London to study historic prices for years at the British Museum.

A friend of mine went to the museum and asked to see Gann’s library card---to see what books he had checked out.

Around 60% of them had the word “Fibonacci” in the title.

You think maybe Fibonacci is important.

You have to understand that Gann was in the business of selling information.

He was not in the business of giving knowledge away.

He also believed that seekers should seek.

Gann was also a Bible Belt Christian who deeply believed in the Bible.

He believed it held a key to cycles and “signs”.

Gann believed man was created in the image of God.

Hold out your two hands with palms up in front of you.

You see 2 hands with 5 fingers with each finger divided into 3 sections.

2, 3, 5

This is the foundation of the Fibonacci sequence.

This is the Key of Jonah as revealed on page 69 in Gann’s novel The Tunnel Thru The Air.

With that in mind let’s look at a Fibonacci cluster that arrives starting today December 15, to December 22, 2023.

December 22, is a Fibonacci 1597 trading days from the 8/2/17 important low.

December 20 is a Fibonacci 987 trading days from the 1/17/2020 top

December 20 is a Fibonacci 610 trading days from the 7/19/21 low

December 18 is Fibonacci 377 trading days from the 6/17/2022 important low

December 18 is a Fibonacci 233 trading days from the 1/13/2023 top

December 20 is a Fibonacci 144 trading days from the 5/25/2023 low

December 20th is a Fibonacci 55 trading days from the 10/3/2023 low

December 15 is a Fibonacci 34 trading days from the 10/27/2023 important low

Typically when there is a cluster of 5 or more prior tops or bottoms that are a Fibonacci number of trading days from a future period of time within a week or so, then a high probability of a meaningful turning point sets up.

As well remember that the important Jupiter/Saturn conjunction occurred on December 21, 2020 right on the winter solstice. This is a powerful combo natural cycle.

Let’s look at how that pointed to many turning points.

270 degrees back from that date was the Covid Crash low.

720 degrees back from that date was the 2018 Christmas Crash low.

360 degrees forward from that date splits the difference between the NAZ top in late November 2021 and the SPX all-time high on January 4th, 2022.

540 degrees from that date is the big June 2022 low. October 2022 was an Undercut Low.

December 2022 is 720 degrees from that date and a low.

June 2023 is 900 degrees from Dec 21, 2020. The important high came a month later.

Next week is 1080 degrees or 3 years from Dec 21, 2020.

Could we get another case of right translation with a month slide into January ?(ala the July 2023 top)

This week we showed some yearly Fibonacci counts.

Let’s drill down.

TWO years ago this January was the SPX all-time high.

THREE years ago was the top in January 2020 prior to the Covid Crash.

FIVE years ago in late December 2018 was the Christmas Crash…courtesy of a Powell Pivot.

The market saw it coming.

Now we’ve seen the market “crash up”. The market knew Powell was going to cry like a dove.

Never underestimate the markets ability to react to a known known.
Momentum has a mind of its own.

Today’s action will likely be important for the SPX.