The Hulk

“Yeah, you got speed freak jive, now.” Can’t You Hear Me Knocking, The Rolling Stones

“I’m worried about something worse than a recession…We have something that is much more profound, we have a breaking down of monetary order.” Ray Dalio

Monday’s Report was ‘The Hook’.
What follows a “hook” in markets, The Hulk.

The market gapped up on Monday after Friday’s largest swoon since the April low.
We stated he likely template was the ‘Covid tape’: 100 point rocket days followed immediately by 100 point downdrafts…with gaps making a graceful exit impossible.

Going into October we stated that Mr. Volatility would rule the tape into the end of the month.
Death-defying leaps and bounds will Trump the Tape.

How you know when The Hulk is going to make an appearance?
When the SPX tested Friday’s low yesterday coincident with a second test of the 50 day line and then went on to follow thru to the topside after triggering an up ORB (Opening Range Breakout), The Hulk was knocking…ultimately peeking above the 20 day moving average.

The test of Friday’s lows allowed us to sell SPY puts bought near Monday’s close for a three-bagger.

Despite more Xi/Trump headline risk late Tuesday, The Hulk had the claws off the bear.

The Usual Suspects were on our radar before the open: on the Hit and Run Private Twitter Feed before the open we flagged longs in IREN, BE, GEV and OKLO on up ORB’s.

Let’s take a look at the Opening Range Breakout in IREN and BE for example.

While many Lieutenant Momentum stocks like IREN, BE, OKLO, ASTS, APLD, MP and RGTI are rocketing, many generals are running from the battlefield.
Names include META, NVDA, CRDO and STX.

In sum, the SPX had not seen a 3% correction since the April low.
The index had not tested its 50 day line since it was recovered in May.
We were 180 day/degrees from the April 7 low, a time to expect a reaction following a power move.

As well the SPX satisfied a long standing target of 6750 measuring off the 4835 low.
Headline risk is undermining psychology underscoring the conceptually correct concept that th news breaks with the cycle not the other way around.