By: Jeff Cooper
Hit and Run Bonus Report: February 13, 2023
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One Big Day, One Bigger Week
January 2023 CPI data will be released on Tuesday at 8:30 A.M. ET.
For several weeks Hit and Run has been mapping this week as a major turning point..
1) On my Square of 9 Time/Price Calculator the number 482 (for SPX 4818 all-time high) squares out with February 13th. Mumbo Jumbo? Well the proof is in the pudding, 482 also squared out with mid-August. From a high of 4335 in mid-August, the SPX plunged to 3495 in two months.
In addition, mid=February is opposition mid-August---creating a potentially powerful synergistic Time/Price T-Square.
2) From the mid-June low to the mid-October low is 4 months. From the mid-October low to mid-February is 4 months. So we have a possible low to low to high cycle completing here.
3) The rally from the June low to the August peak was approximately 700 SPX points. Likewise the advance from the October low to the early February peak was 700 SPX points.
We are now in the first real pullback since the advance off the December lows.
Either this is a bullish pullback that has potential to further drop to fully backtest the breakout pivot in the 3950-4013 region prior to more upside or Mr. Market has staged the Mother Of All False Breakouts prior to a dramatic new leg down.
I’m not pretending to know how the CPI will affect Wall Street’s calculations especially as it has a good chance of being revised next month.
Be that as it may, it’s grist for the Algomatics mill.
Then on Thursday we get the PPI and the Bureau of Labor Statistics Mystery Tour begins again.
And you think you can trade market direction off the B(L)S?
Even if you were in the loop like Mortimer and Randolph, you wouldn’t be able to game the contortionist the market has become this century.
This is not a way to trade. Nor would does Hit and Run try.
Instead we look at viable, reliable and historically proven patterns and methods…and of course, the pivots projected by the Square of 9 Wheel as to where Time and Price square-out.
Is the Square of 9 Wheel a guarantee. No. Nothing is in the market.
But in my nearly 40 year career it’s the best edge I’ve ever seen.