The ORCL At AI

The daily SPX below from last week shows the index continues to coil within an Ending Diagonal from the April low.

It has room to run, but precious little room to correct without snapping the bottom of the Diagonal or Wedge.

There are several economic numbers this week that could be a catalyst for breakage or a spike higher that would likely be climatic within the context of the current pattern.

Downside follow thru on a break of the wedge has potential to the 5500 region.

Exemplifying the climatic champagne run in the market is the Earnings Explosion in ORCL after hours flagged on the Hit and Run Private Twitter Feed Tuesday afternoon.

A weekly ORCL shows it turned down its 3 Week Chart on the week of August 25^th.

The 3 Week Chart turns down with 3 consecutive lower weekly lows, not closes (although that may be the case).

ORCL went a tad lower initially the week following the turndown then turned up to close near the high of the week.
This week it gapped open.

Interestingly, ORCL’s pullback low brushed a channel mid-point line.

Last week’s swing low was 219 on September 2.  That’s where we want to measure from using the Square of 9 Wheel.

180 degrees up is 250.

360 degrees up is 282.

Consequently with ORCL closing at 241 in front of earnings Tuesday any positive reaction was likely going to clear 250 opening the door to 282.

At the same time September 9^th points to/aligns with 302.

In sum if ORCL was going to rally, it wasn’t going to stop at the prior high near 261.

The setup signaled good risk to reward with the likelihood that the door to 282 was open.

After  the print ORCL traded to 310.

Amazing…but calculated.

My take was that with speculative juices running, epitomized by recent Earning’s Explosions in SNOW, MDB ULTA (played by Hit and Run) and CRDO, that ORCL was not going to not make a new high with the SPX closing at a new high.
In sum, as the Soros quote we used yesterday exclaims, “when I see a bubble I rush into it adding fuel to the fire. This is not irrational.”

The tone of the tape along with its chart position and the message of the Square of 9 Wheel projecting to at least 282 demanded a long position.