Wednesday, August 5, 2009

Fibonnaci Calls: the 38.2% Retrace is Approaching

It is time to try Fibonacci again...

Leonardo of Pisa (c. 1170 – c. 1250), also known as Leonardo Pisano, Leonardo Bonacci, Leonardo Fibonacci, or, most commonly, simply Fibonacci, was an Italian mathematician, considered by some "the most talented mathematician of the Middle Ages".[1]

Fibonacci is best known to the modern world for:
(1) The spreading of the Hindu-Arabic numeral system in Europe, primarily through the publication in the early 13th century of his Book of Calculation, the Liber Abaci.
(2) A number sequence named after him known as the Fibonacci numbers, which he did not discover but used as an example in the Liber Abaci.

For you Fibonnaci fans, he is close to calling an end to this - that is if we are going to do the 38.2% retrace.

If instead, it's 50% or heaven help us, the 61.8% retrace ... this party is just getting starting and instead of Fibonnaci we turn to a far more sophisticated fellow for guidance on how to approach the market.

Kool Aid Man (c. 1970-current) also known as CNBC inspiration, is a 7 foot, 450 pound mound of pure bull.... err, pure bull excitement, considered by some "the coolest flavored drink mascot in history".

Kool Aid Man is best know to the modern world (before green shoots became fashionable) for:
(1) Spreading stories of good times on financial infotainment TeeVee punctuated by cries of "Oh Yeah!" (loosely translated to "Buy Stock!")
(2) Bursting through brick walls
(3) Creating moments of humor and joy on Fund My Mutual Fund blog

[Editor's note: Mark, this could be your best blog entry ever]

Hat tip to Jeff for the chart.

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