By: Jeff Cooper

Hit and Run Trading Morning Report - April 15, 2024

Historic Convergences Open The Door To Mayhem

We put thirty spokes together and call it a wheel, but it is on the space where there is nothing that the utility of the wheel depends.” Carl Jung

Below is a picture of my Square of 9 Wheel.

In the markets it serves as a Time/Price Calculator.

Some version of it has been around for thousands of years.

W.D. Gann went to India and Egypt to study it.

The presumption is it was used in ancient times as an astrological device.

In fact it is a birds eye view of the great Pyramid of Giza.

Notable in the above picture are the TWO ECLIPSES (one circle PASSOVER’s another) produced by the geometry of the Sphinx and the Great Pyramid.

Both create a 3rd form called the Vesica Pisces.

What does this have to do with the stock market?

The geometry of the Vesica Pisces is the square root of 1, 2, 3 and 5.

You will immediately recognize that these are the building blocks of the Fibonacci Spiral, manifested by the Square of 9 Wheel.

Fibonacci harmonics are pivotal in the stock market on all time frames and price levels.

For example, from the crash of 1929 to the crash of 1987 is 58 years.

2024 is 95 years from 1929.

58 divided by 95 is 0.61, the inverse of 1.618, the Golden Ratio or the Divine Proportion.

2024 is 37 years from 1987.

37 years divided by the 95 years from 1929 to 1987 is a Fibonacci 0.38.

On the Square of 9 Wheel, 58 squares October 29th.

So if you were trading in 1987 and saw the similarities of the pattern between 1929 and 1987 weeks before the October 1987 crash as did Paul Tudor Jones,  and had a Wheel, you could have seen that 58 squares-out with October 29th.

The takeaway is that this “vibration” suggested another crash for October 1987.

As well the 386 DJIA price high in 1929 squares out with October 19th, the Black Monday Crash in 1987. Direct hit.

You can’t make this stuff up.

The incomparable benefit of the Square of 9 Wheel is that it integrates Time and Price in a most unique way…especially when you use also the numbers in the grid as years instead of price.

As W.D. Gann wrote “Anniversary dates are very important. If you check back on your long-term charts you will find that harmonic years many times will move in the same direction. The important harmonic years are every 10 years back.”

Let’s take a look at some time relationships using the Square of 9.

Oct 19, 1987  + 1904 weeks is April 16, 2024

1904 squares April 17. It’s always the “week of” as W.D. Gann said.

October 1987 + 438 months is April , 2024

438 is opposite May 17the anniversary of the NYSE

The DJIA 386 price high in 1929 squares April 16.

The rebound high following the 1929 crash occurred on April 16, 1930.

As we’ve indicated throughout this year, there is a strong likelihood that

A mirror image fold-back with 1929-1930 is playing out.

Notably, the big low in the fall of 2023 was October 27th.  The crash in 1929  were the days between October 24-29th. On Monday October 30th  , 2023,  markets gaped up starting a 5 month advance …ala the 5 month return rally from October 1929 to April 1930.

Is a mirror image fold-back in progress?

The first shots of the American Revolutionary War were on April 19th 1775.

The Civil War started on April 12, 1861.

What would you say if I told you 1861 is 180 degrees straight across and opposite Mid-April.

April 16 specifically.

On April 14th President Lincoln was assassinated.

On April 6th the U.S. entered WW1.

The first lunation following the Vernal Equinox (the natural beginning of the year) is considered a week of infamy and aggression in history.

April is opposite October on the calendar. October is famous for major highs and market crashes.

May 17th is the anniversary of the NYSE from 1792.

1792 (green) aligns with early March a pivotal time in markets in the last century. Early March ties to the low of the Great Recession.

It aligns with early September the high before the Great Depression.

Early September is also the start of WW2.

The anniversary of the NYSE also squares December 7th, Pearl Harbor which marks the entry of the U.S. into WW2.

It squares June 6, which is D-Day and the beginning of the end of WW2.

You can see the relationship between the NYSE (stock market) and geopolitical events and major market turning points.

Remember the day of the NYSE Buttonwood Agreement that started the NYSE is May 17th.

The South Sea Bubble collapse 1720 is 304 years ago.

304 squares out with May 17.

1869 Panic, 155 years ago squares-out with May 17th and November 18. (The primary low of the 2007-2009 Bear was on November 20/21).

The 1893 Panic and Depression started in May.

1893 is 131 years ago. 131 squares May 17th.

1974 was a  Bear market low (Oct 4).

The year 1974 squares May 17th.

The high prior to the 2008 Lehman Brothers Crash was May 19, 2008.

The year 1929 points to May 19th.

1937 was the rebound year after the 1932 bear market low…much like 2007 was the rally high after the 2002 bear market low.

In MAY 1937 the market top and dropped for 13 months.

The year 1937 points to May 6, 7.

My expectation is that cycles will exert their influence into that time frame.

In fact, the DJIA high so far this year is March 21st. Measuring from March 21st, May 7th falls in the heart of the Gann Panic Zone.

Last week I noted

The U.S. Declaration of Independence is 1776 which points to April 16th

So there have been 76 “passes” of April 16 since 1948.

So what.

July 4th, 1776 is 248 years ago which points to July 4th.

So this year we have “convergence”.

76 squares  April 8, the date of the 2nd Great American Eclipse.

It looks like these eclipses figure prominently in these historic time harmonics.

As offered last month, it is remarkable that the first Great American Eclipse on August 21st, 2017 stared an explosive 5 month rally into late January 2018 followed by a crash and that the we got another explosive 5 month rally starting around an eclipse in October 2023  running into the time frame of the second Great American eclipse on April 8th, 2024.

While total eclipses are truly rare, occurring on average only 375 years at any given place on Earth,

In the last SEVEN years the city of Cleveland has been visited by 3  eclipses, one on August 21, 2017 and the other on October 14, 2023, and the April 8, 2024 eclipse.

Cleveland is the largest city on Cross of the 2017 and 2024  eclipses.

Grover Cleveland is the only President of the U.S. to have ever served two NON-CONSECUTIVE terms.

That may be repeated upon the election of Donald Trump in November.

This is some remarkable synergy.

Grover Cleveland’s second term started in 1893.

A financial panic started in MAY 1893.

Lasting into November with a run on the currency.

It started a depression that lasted THREE years. (think 1929-1932).

Is there something that gold is sniffing out on its parabolic run from March 1st.

Grover Cleveland’s second term starting in 1893 is 131 years ago.

On the Square of 9 the number 131 squares May 17th, again, the birth of the NYSE.

Is all this happenstance, coincidence?

Psychologist and philosopher Carl Jung wrote, “Synchronicity: A meaningful coincidence of two or more events where something other than the probability of chance is involved.”

What did Einstein mean when he said, “Everything is determined, the beginning and the end as well”?

In sum, the DJIA struck a high on March 21st which ties to the SPX/NAZ Bubble Top on March 24, 2000.

Measuring from March 21st, as offered above May 7th is in the heart of the Gann Panic Zone.

Checking a daily DJIA shows unusual weakness. It has been down 9 of the last 10 sessions.

It left an Expansion Pivot sell signal (breakage below the 50 day on the largest range in 10 days) on April 4th.

The only up day in the last 10 was the April 5th when the DJIA backtested its 50 day line followed by a rollover.

Notice that the April 4 sell signal also issued a Rule of 4 sell signal, a break of a 3 point trendline.

My expectation is that the DJIA does not make new highs before it tests its 200 day moving average…if  it’s going to make new highs at all for the balance of 2024.

It is worth noting that “2024” on the Wheel is opposite May 7th.

Consequently, Hit and Run has a bearish stance and we own May puts.

Out posture is to short weak stocks under distribution as they try to stand on their tiptoes.

Be that as it may, knowing that violent short term rallies take place in the midst of momentous declines, we seek to capitalize on the long side in “squeeze plays”

The market may have a relief rally after the “theater” of this weekend's attack on Israel.

After all it was widely advertised, with Iran notifying the U.S. of its intentions and timing.

However Iran’s humiliation in the failure of the attack may perpetuate something more pernicious.

As well Israel’s next move may escalate things.

A rally this week will be a sucker’s rally.

There are many individuals around the world claiming to teach “Gann method”. They should be avoided. This is because none of these individuals has produced a consistent forecast of stock or commodity markets and consequently cannot be in fact be teaching Gann’s real methods….at the heart of which is the Square of 9.