By: Jeff Cooper

Hit and Run Morning Stock Report: February 23, 2023

GLD in the Wheelhouse

Gold rallied from 1613 to the mid-1900’s from early November to early February.

That’s a textbook 90 degrees in time.

Long-time readers are familiar with Hit and Run’s use of the geometry of Time and Price in keeping with the methods of legendary trader, W.D Gann.

Gold’s 90 degree/day rally is a text book example

Moreover, if we look at the price action in GLD, it telegraphed both the low and the high.

GLD left a Combo buy signal at the November low---a Gilligan and a Soup Nazi buy patterns.

At the high, GLD left a large-range Soup Nazi sell signal and Train Tracks.

A Gilligan buy signal (from my books Hit and Run Trading)  is a gap down to a new  60 day low with a close at/near session highs.

A Soup Nazi buy is a new 20 day low that reverses back through the low of at least 4 days prior within the 20 day lookback.

As below, so above. A mirror image fold-back.

Gold/GLD had a momentous move in that 90 day stretch. GLD moved from 150 to 182.

Subsequently, we’ve had a decline.

However, given the nature of the slope of the prior rally, the presumption is this decline is a corrective versus impulsive decline…ie, a bullish pullback.

Slope refers to sharp price movement over a short time period…ie, momentum.

GLD turned its 3 Week Chart down last week and bounced and is currently testing last week’s lows.

If indeed, this decline is bullish it should strike a low soon in terms of time and price.

One factor underpinning that assumption is that November 3rd, the low, vibrates off 169 ---where GLD is currently trading.

Consequently we may have a Time/Price square-out on the table.

What that means simply is that Time points to Price and Price points to Time.

“There is a definite relation between price and time.”
-W.D. Gann

Checking an hourly GLD shows 3 drives to a possible low and a double bottom.

Breakage above 170.50 triggers an Angular Hourly Rule of 4 Breakout opening the door to a test of the declining 50 hour moving average.

If the 20 hour (red) crosses back above the 50 hour (blue) it opens the door to a push to Phil D. Gap.