By: Jeff Cooper

Hit and Run Trading Morning Report - January 31, 2024

An Amazing Stock Market Tool

Some traders only use price.

Some traders use time…cycles.

Few know how to integrate the two.

Master trader W. D. Gann wrote that when Time and Price square-out or balance out expect a change in trend.
He went on to state that all important highs and lows are square-outs.

The important thing to understand is that while all important highs and lows are square-outs; not all square-outs are major highs and lows.

It is the price action that validates whether a square-out is a turning point.

Speculation is observation, pure and experiential. Thinking isn’t necessary and often just gets us into trouble.

At the end of the day, Gann believed that time is price and price is time.

When they come together it can be “pay dirt”.

The Square of 9 Wheel or Time and Price Calculator is an amazing tool that shows when time and price align.

Let’s take a look at two examples in AMD and NVDA that will blow your socks off.

AMD bottomed recently on October 26th, 2023 at 93.

2 cycles of 360 degrees up is 185.

As my Square of 9 Wheel shows both 93 and 185 square (90 degrees) October 26th.

This relationship caused the low in late October and as we flagged on the Hit and Run Private Twitter Feed when AMD broke out above the 150 region in December, the door to 185 was open.

Further proving the geometry of this time and price relationship in AMD is that 360 degrees up from the 93 low is 134/135.

On the above chart notice that this 134 region defined the first pullback low after AMD exploded.

90 degrees down from the 185 peak is 171.

A 10 minute AMD shows Tuesday’s downdraft to 171.

After the bell, AMD reported. It broke 171 dropping to 165 before rallying to horizontal resistance

At 174.

The second mouse below 171 got the cheese with AMD skidding to 159/160 which is 180 degrees down from the 185 high. Wow.


NVDA dropped from a high of 347 on November 22, 2021 to 108 on October 13, 2022.

We’ll come back to that November 22 date in a moment.

From 108, NVDA ran up to 592 on August 24th, 2023.

502 is 6 cycles of 360 degrees up from 108.

Remarkably 108 and 502 align with/vibrate off August 24th. Wow.

From there NVDA declined to 392 on October 31st, 2023.

Was there any geometry pointing to a low at 392?

Yes. 392 is 4 cycles of 360 degrees up from the 139 low on December 28th, 2022.

NVDA exploded following a Rule of 4 Breakout, a breakout over triple tops, on January 8th,

It struck 634 yesterday, January 30th.

634 is 180 degrees straight across and opposite October 13th---the major low in 2022.

Is 634 a major high brandished by this major square-out?

Above I mentioned November 22nd.

November 22 squares the 108 region as well as the 502 region…both key pivots.

As well November 22 is 90 degrees in time from August 24th, the important peak in July 2023.

Was Tuesday an important high in NVDA??

Well, since the January 8th Rule of 4 Breakout, NVDA has been in a Runaway Move defined by no more than 1 day pullbacks against the ramp.

Tuesday, NVDA left a Soup Nazi sell signal…a new 20 day high with a knife back below the a hig h of at least 4 days ago within the 20 day lookback.

NVDA is stretched. Its 3 Day Chart should turn down.

The behavior following a turn down of its 3 Day Chart will tell us a lot about NVDA’s trend.

In sum the reversals of two generals exemplify what may be climatic price action in the market where stocks are moving from institutional hands to weak retail hands.

Follow thru will be key.

Stocks may back and fill until mid-February.

This is 490 calendar days from the October 2022 low,

WD Gann said 7 is the fatal number,.

7 squared is 49.

Many crashes have started 49 days from high including the 1929 and 1987 crashes.

As well, the SPX benchmark is at 4900 which is 70 squared.

The SPX closed above 4900 for the first time ever on Monday.

While it closed above 4900 on Tuesday, the action following earnings in AMD and GOOG saw the SPY drop below 490 (4900).

An hourly SPX shows the breakout over 4900. A knife back below 4900 will issue a Boomerang sell signal on the hourlies.

A daily SPX shows Tuesday’s NR 7 Day, the narrowest range in 7 days.

These contractions in volatility are typically followed by expansions in volatility within a few days.

Today is Fed Day and in league with yesterday’s selling in tech we should get a doozy of an FOMC Cha Cha Day.