On the crime show C-S-I, Mark Harmon and crew examine the evidence and usually figure out the "who did what and when". I have a new friend in Rio- who said Fibonacci time analysis is hard, and I agree with him. Yesterday, WMT sold off hard, breaking an existing trend-line. On the chart above I detailed a five impulse wave pattern, followed by three corrective waves, with wave c breaking trend. There were strong indications on other charts that this would happen, but the chart above illustrates the decline.
, Fibonacci price levels, , Fibonacci time cycles, and phase energy levels are all clues in the C-S-I toolbox (Clever Secret Information).
I study charts (and have been since 1983). I am good at picking up on developing , but sometimes I don't see the forest for the trees.
So here is a trick that I learned 25 years ago. The Fibonacci numbers are 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.... and so on. If you chart daily, position your cursor on a major event (like yesterdays sell-off), and simply click backwards, day by day, and count the days until the previous big chart event. With Wal-Mart you should be AMAZED at how many events happened EVERY 89 DAYS. Yes, 89 is a Fibonacci time cycle. Here are the results of the WMT "89 days" cycle:
89 days ago, on 12-22-15, there was a powerful buy signal; the phase energy rose, fed in the up trend, was positive, the Cloud said "buy", WMT went from $59 to $69 per share. 89 days before this, on 08-17-15, strong SELL signals were issued in the phase energy, the reversed down, and the indicated SELL. WMT fell from $73 to $63 in five days. 89 days before 08-17-15, on 02-03-15, WMT structure and indicators issued HUGE sell signals via phase energy, Cloud reversals, , and sells. (Getting the flavor of this C-S-I forensic approach yet?). 55 days before this (yes, 55 is a Fibonacci number), on 11-02-14, WMT C-S-I forensic clues issued a HUGE buy set of signals (phase energy up, , up, up, etc.). Because these events happened at 55 days, I added a re-set of 34 days to my count to get back on the 89 day cycle, and guess what?
Yes, 89 days before this, on 05-05-14, WMT C-S-I clues flashed "sells" in phase energy, , , and .
89 days before this, on 12-23-13, WMT issued sells via , , cloud, etc.
89 days before this, on 08-16-13, WMT issued MULTIPLE SELL SIGNALS (phase energy, , , down reversal, and down).
89 days before this, on 04-12-13, WMT was in a rally, but a phase energy REVERSAL and REVERSAL called the exact PEAK, and WMT went sideways for three weeks at $79, then fell to $72. (Do you understand what I am trying to show you?)
Picking out patterns in structure is not always easy, BUT, counting backwards and identifying Fibonacci time cycle patterns VIA DAYS COUNTED BETWEEN EVENTS can clue you in to look for C-S-I forensic clues you might otherwise miss. This works for day traders, too. If you use a 10 minute chart you wouldn't count days, but try counting . Does a pattern develop every 13, 21, 34, or 55 trades?
I feel Wal-Mart will be giving us lower prices, but, sadly, it will be in the common stock .
Today I would like to close with three quotes, the first from Andy Warhol: “They always say time changes things, but you actually have to change them yourself.”
The second quote is from Benjamin Franklin: “You may delay, but time will not.” The third is from Groucho Marx: “Time flies like an arrow; fruit flies like a banana.”
I hope you enjoyed this presentation and I hope it helps you to develop an edge in identifying patterns. May all of your trades go well. Don.