“You’re walking meadows through my mind
Makin waves across my time” Strange Magic, ELO
“Hidden behind the façade of pompous jargon and noble affections (affectations?), there is more sheer larceny per square foot on the floor of the New York Stock Exchange than any place else in the world.” Richard Ney
Mr. Market pulled a Rabbit Out of the Hat Reversal on Wednesday.
It was no magic act.
It was orchestrated.
From down 125 points it closed in the green exploding higher after the bell courtesy earnings from META and MSFT.
Obviously no one ‘knew’ the earnings would be blow-outs;
The late day ramp in the markets were just a “tickle me Algo” moment.
As my dad liked to say, “Stocks don’t move, they are moved.”
A daily META shows the Soup Nazi (Bear Trap) at the April lows.
META’s print perpetuated a drive to its 200 day moving average after the bell.
Notice the bottom of the blue trend channel and the declining 50 day line in the 580 region.
The Feb 14 high squares the 480 low. A Time/Price square-out.
April 21, the low, squares-out with the 582 region where META has spiked to.
No one knew. Right?
MSFT also ramped on the runoff into earnings last night.
Notice yesterday’s LROD or Lightning Rod (large range outside up day) in front of earnings, reclaiming the 50 day line. No one knew?
Someone tickled the Algo’s.
MSFT is trading at 430 up 34 pre-market kissing a Tops Line from the all-time high.
The Dec 12 ATH squares out with 458, the all-time high region (456).
360 degrees up from the April 7th 345 low is 423.
MSFT traded up to 423 post earnings and is eclipsing that level pre-market to 430 testing the red declining trend channel.
Is MSFT carving out an A B C countertrend rally with this morning’s high nailing the C wave?
Breakage back below 423 region opens door lower.
Will those who luckily loaded the banana boat before earnings yesterday lock in gains this morning?
456, the high, and 423 square-out with April 30.
As long as over the 423 square, MSFT is in a strong position theoretically.
The SPX Pinocchio’d our key 5460 downside pivot Wednesday morning but quickly recaptured it putting it in a position to rally.
When the SPX triggered an Opening Range Breakout it opened the door to extend higher.
Notice the successful late day tests of the Opening Range Breakout ABOVE the key 5460 region.
In the closing minutes, the index triggered a Jump the Creek buy signal as it offset the morning gap.
No one knew obviously.
If yesterday saw an Opening Spike Low, is it possible today will see an Opening Spike High?
The SPY is up nearly 7 points this morning trading at 561.
Interestingly 561 squares out with April 7th, the low for the move.
If Time points to Price, and Price points to Time (and they do), it is possible the SPX is squaring out a high this morning. Clearing and holding above 561 ish opens the door higher.
Square of 9 Wheel
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Likewise, earlier this week we flagged the potential for a square-out high in QQQ at 480 region.
This morning they are trading at 483.
Is it a Pinocchio or the real deal?
Breakage back below 480 and we need to be on our toes.
Let’s look at PLTR’s stunning reversal on Wednesday.
From the open it tested toward Monday’s low leaving Train Tracks on the 10 minute chart.
Hit and Run altered to buy it on the open in the hole.
While the market was still sliding PLTR triggered an up ORB….and bullishly extended with authority.
It triggered a Jump the Creek buy mid day when it offset the morning open gap and after a little knee-jerk pullback genuflecting some respect for the gap, PLTR ripped higher.
Hit and Run Private Twitter Feed alerted to buy back PLTR on a swing.
PLTR was a Torpedo setup throughout Wednesday…damn the torpedos hitting the market, full steam ahead.
These setups don’t come out of the blue.
All trading is contextual.
PLTR’s runaway move emanated from a Technical Trifecta:
1) A Stein and Handle pattern
2) An Angular Rule of 4 Breakout (a breakout over a declining 3 point trend line)
3) A Recapture of its 50 day line.
Notice that PLTR turned down its dailies for the first time on Wednesday morning’s weakness.
It was the first turn down on the dailies since PLTR exploded out of the Technical Trifectal.
The first time a market/stock does something, it’s talking.
Hit and Run looks for these “Combo” setups.
The more technicals you have in your favor, the odds are stacked in your favor.
After hours, PLTR is satisfying our Square of 9 projection from early in the week for a drive to 120-123.