By: Jeff Cooper

Hit and Run Trading Morning Report - May 23, 2024

Will Sellers Feed The Ducks While NVDA Quacks?

“A market does not culminate in one grand blaze of glory. Neither does it end with a sudden reversal of form. A market can and does often cease to be a bull market long before prices generally begin to break.”
-Jesse Livermore

The image below depicts the spiral number grid on my Square of 9 Wheel or what is also referred to as a Time/Price Calculator.

The purple arrow on the left points to 756, NVDA’s low on April 19th.

756 squares-out with 1024, the purple arrow on the right of the chart.

(the number “24” is in purple because the first black grid of numbers represents 1 to 999 while the second grid of numbers is coded in purple is 1000 to 2000. I have color coded the numbers this way otherwise the Wheel would be 3 X the size it is which is already a large 2 ½ feet X 2 ½ feet).

The Cup and Handle on NVDA’s dailies implied a spike above the psychological 1000 level as walked thru in yesterday’s Hit and Run Report.

This is why we alerted a buy of NVDX at 104 Wednesday morning.

While 1024 is a PRICE square-out with the 756 low, we also had a Time & Price square-out on the table.

The blue arrow on the upper right of the Wheel points to May 22/23.

Notice that this aligns with a price of 1017 (the inner blue arrow).

Legendary market operator, W.D. Gann wrote, “When time and price square-out expect a change in trend.”

When NVDA hit 1017 after hours, Hit and Run sold the balance of its NVDX position.

How does this align with the SPX of which NVDA is a major weight?

The SPX struck a big low on April 19, 2024. It defined the largest pullback since the parabolic move off last October’s low started.

April 19 is 180 degrees straight across and opposite 534/535, purple (5340-5350).

On the heels of the NVDA show, the SPX is set to hit that level this morning… potentially squaring out April 19, the date of the biggest low of 2024.

Anchoring “zero” to October 27, the big low in 2023 (blue) aligns with 535 (5350).

Let’s look at the setup from another angle.

The SPX high before the April pullback low was the March 28 major high.

Anchoring “zero” to March 28 (purple) you will notice that March 28th lines up with/vibrates off 410 (4100, the inner purple arrow). 410 is the October 27, 2023 low.

Remarkably, the next full square of 360 degrees up from 410 is 495  or 4950 (blue).

This was the price at the big April 19th low!

Said another way. the SPX found support 360 degrees up from the October low.

You can’t make this stuff up.

As W.D. Gann stated, “God geometrizes.”

Millions of minds and millions of shares meet in the markets and yet geometry trumps the tape.

Think about that.

If the market goes fugazi today into Friday, theoretically, there is a case to be made for an extreme blow-off print at 539 (5390).

539 is the red arrow 180 degrees opposite March 28th that vectors 410 and 495.

The SPX should spike to 5340-5350 this morning and it will be interesting to see if there are more buyers willing to chase or sellers feed the ducks while their quacking.