Chart Of The Day: The Fibonacci Fade And January 22

Tyler Durden's picture

For the Fibonacci fans out there, here is something rather stunning from Newedge's Brad Wishak. In the chart below, the strategist looks at the duration in days of each stock rally leg since the 2009 bottom. What is rather amazing is follow through between one rally and the next in terms of, you guessed it, the Fib 61.8% retracement. As Wishak comments: "obvious is the diminishing marginal utility of each bath of QE manifesting itself in shorter and shorter rallies. Less obvious is the underlying rhythm of the start and stopping points. Applying the 61.8% retrace to time, called the the most recent September stock highs within 4 days. And projecting this pattern forward, we're now just around the corner from the next 61.8% top, which hits on January 22." Because if in a centrally-planned world DeMark indicators still have any relevance, then certainly so does Fibonacci.

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ebworthen's picture

Imagine where the casino markets would be if they hadn't bailed out the crooks and the FED hadn't thrown QE wood on the fire?

And like a fire, this thing is burning bright! 

Hot coals, popping embers, flames, smoke.

Each QE log burns faster because this thing is so hot. 

How much wood is left?  Ben sure has cut down a lot of trees.

And this fire is only keeping 10% of the population warm, if that.

What happens when Winter comes in earnest and all the trees are chopped down?

adr's picture

Bankers have a lot of fat right? Probably make really good oil for lamps and furnaces.

Bernanke oil could probably heat a few hundred homes all winter.

hannah's picture

what is also cool is that the trendlines almost meet at the all time would take an act of god (alien god) to get us up past the all time highs. i dont think there is enought umph to get us over the top and keep us there for months or years....i think the end of the market is approaching.

Herkimer Jerkimer's picture




Fellow Hedgers!


I haven't a F'ing clue what a fibanacci is, (do you boil it and put a cream sauce on it?) but this is why I am here!


Would the next peak be only about 27 days away?!  Wow, I'm a "High" finance guy now!


And boy, do these $#!+Rats put the FIB in fibanacci!




Love it!


Great insight.


Keep up the excellent work. I'm gonna make a million bucks with the stuff I glean from this site.


Run for cover!



mkhs's picture

I prefer pan fried with a bittersweet sauce.

Glass Seagull's picture



"Fibonacci numbers!?!?  That stuff is creepy and it doesn't work!"

[Said Ben Bernanke as his eyes nervously darted to the area on his bookshelf dedicated to books about Fibonacci numbers]