By: Jeff Cooper

Hit and Run Trading Morning Report - March 8, 2024

Chips & Dips

On the lightest volume of the month and moderate breadth, markets moved sharply higher yesterday.

Today we get the NFP which is traditionally the top market mover of the month.

There is no way to know how the market will react to the number, but the presumption is

The SPX rallies to tag 5210.

521 squares March 8th.

As well cycles suggests a top and a sharp shakeout here thru next week.

If that occurs I think it sets up a Buying Climax similar to the one that began on the Ides of March, 2000 when the SPX exploded from 1357 to 1552 in 8 trading days.

The entire run was wiped out by April 14th.

The semi’s have spearheaded this meltup in the market with TSM and QCOM joining NVDA and SMCI’s parabolas.

SMH struck 234.91 yesterday.

Notice the Bottoms Line ties to the 20 day ma around 210.

A reversal back thru the Tops Line suggests a Throw Over.

While this Throw Over could extend of course, a reversal back thru the pivot suggests a swift and sharp drop.

The Wheel suggests while SMH could go higher intraday, it may reverse to 235.

235 squares March 8th.

When you get s convergence and coincident square-outs in markets the odds of a turning point increases.

If the SPX strikes 5210 we will take a short position.