KMI … bada bing bong boom

12/21/2015 – should get a strong rally now. target is TBD but if it’s corrective we’ll see 3 waves up. will watch …

funny isn’t it?  no idea what they really do or WHY they were getting crushed and sold off big time … but do kind of know patterns. saw 14.21 as a potential pattern completing.  this one appears to have worked.  we’ll come back an visit in 14 days as price is time …

cheers. no idea if it’s going to work but it respected our level today.

Page_15-12-21_16-20-16

 


the internet and social media is amazing. we are ALL connected …

we found each other thru health care and … he’s an avid trader.

so from time to time we meet on Skype and talk Health Care (hint hint – radical innovation is occurring) and the market.  I’ve “seen” bits and pieces of KMI on my Twitter feed and everything but when someone like Joe asks me to check it out (He’s  a “health care” guru) I take it seriously.

so, he’s also a budding PATTERN recognition trader (I’m bringing him away from the dark side of fundamentals (I jest)) and he asked me to break KMI down in what I SEE and not believe.

  1. it comes down to PROJECT (basic AB=CD suffices), EXTEND (extend retracements off IMPORTANT lows), RETRACE and IF/WHEN all the numbers come together you decide to take the investment opportunity OR not.
  2. throw a momentum oscillator on there – and if you have divergence in the direction of the pattern – it helps.

don’t know what the heck is going on w/ KMI but we do have some “music/math/geometry” coming into play …

PROJECT

AB=CD – the basics of measured moves.

Page_15-12-07_20-19-54

EXTEND

find – to the best of your ability-  the KEY highs/lows of a march either UP or DOWN. Your eye will train to it … but this “key low” is easy to see – EXTEND off that low using sacred geometry, music, Fibonacci.  guess what, the numbers come in around 14. Note, where the 1.618 extension comes in … put your STOP, if trying to go long, below there

Page_15-12-07_20-23-16

RETRACE

we can’t really retrace because we have blown thru the lows after the IPO.

Some recommend using “zero price”-  which works-  but I don’t think it’s necessary in this case.  so let’s do some square root targets and you’ll find that 1.5 trips around the wheel is around 13.50 and you’ll also see with some basic TIME cycle analysis we are working on a 90 week cycle.

folks we hit that cycle this week …

so, as a PATTERN recognition investor:

  • we have a bunch of math coming in around 13-14
  • we have a time cycle coming THIS WEEK and have found support .. so, risk a 1 or 2 and go for it?
  • what makes me “beg of caution” … STRAIGHT DOWN and when that happens patterns usually fail.

it’s all probability …but 13-14 looks “OK” to nibble on a long w/ a close stop? yes/no?

B

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: