Just for a bit of fun, in case the shite hits the fan....For the...

Just for a bit of fun, in case the shite hits the fan....

For the followers of Leonardo Pisano Bigollo aka Leonardo of Pisa, Leonardo Pisano, Leonardo Bonacci, Leonardo Fibonacci, or, most commonly, simply Fibonacci, was an Italian mathematician, considered by some "the most talented western mathematician of the Middle Ages." Of course this predates all of the poor math that current day Italians seem to be eschewing.

I'm not a chartist per se, prefering to understand first the fundamentals and when that story makes sense to look a the charts for some clues - or strategies.... if visible


By my calculations the Fibonacci sequences lined up pretty well to indicate the first buy back (helped of course by no announcements of note).

The initial strong uptrend, begun early Jan'12 and topping out late Apr'12 has 1st retracement of 38.2% at the $1.00 level, 50% at $0.85 and the 61.8% at the $0.70 level

A shorter uptrend in that same intial trend can be seen from early Mar'12 to same Apr'12 top. It has 61.8% retracement at $1.00

Implies to me at least that $1.00 was a key number and that was Aussie's first buyback point (executed today after waiting patiently).

Plan to follow the Fib numbers down (should that occur), doubling size of each purchase. Orders are in queue.

Applying the Fibs to WTI, roughly speaking, from May'10 to May'11 has the 61.8% retracement as $84.85. There's that critical $85 level which has been breached multiple times over the past week.

Extending the WTI downtrend from Feb'12 high to this past week has the 38.2% extension to be about $73.


If that roadmap doesn't confuse the pelaton nothing will!!!

I'm just trying to make sure I don't get run over. Be careful out there - watch oil price first for the moment I say.

If anyone else plays with Fibs (numbers that is) and can corroborate I'd like to hear the input.