note the thrust coming into this very important .786 retracement node. additionally, we have a 1.618 projection a little lower sitting right on top of .841 retracement. (1/1.1892 = .841 equal octave scale of music ratio) and we can throw in some polarity and bullish divergence so would expect some support or a pause.
that being said, I enjoy doing ratio analysis so here’s AMZN / BABA. the first graph below is back almost 4 years ago when I did the same relative strength look because, at the time (believe it or not) BABA was stronger that AMZN. don’t believe me? look at the ratio … it had been going down for a couple years as BABA climbed but then guess what, measured moves and retracements and a bunch of pattern stuff gave AMZN the support in the ratio and off it went and the rest is history. (note, did I mention – once – anything to do w/ sales, or revenue, or anything like that? nope …just numbers and patterns for me)
if seriously trying get long BABA I would watch for a daily or weekly SRC before entering. when I look at those relative strength ratio charts it looks like BABA is about to get smacked even harder so caution warranted … wait for an SRC.
this is the 2017 AMZN / BABA and note the “technicals” at work here …the first AMZN/BABA chart is the circled area in the chart above .. note, it worked.
a lot going on in this chart … bottom line is either here or a little higher we have significant resistance with the most “basic” of price projections completing the AB=CD.
in this case we have two AB=CD’s
a larger orange one that starts at the all time low around 58. and a “fractal” blue AB=CD that starts at/around 129.
I have also use a very helpful technique taught me by my friend and mentor Michael Jenkins. It’s simple and very powerful. basically take 1/8’s of the signal reversal candle and project up … as you can see, we have a 1.0 projection and a .5 projection hitting at our lower and upper target zones respectively.
we also have the light blue parallel channel being hit at the upper end
extension targets are present …
then, no kidding, NOW, I’ll take a peak at the “potential” count. what i do feel “ok” about (and that’s all I will every to admit to w/ Elliott Wave – an “ok”) is the sub degree count that is finishing (labeled in blue) and that shows we are finished/finishing 5 waves. Is the THE 5 or the 3rd wave …I’m going w/ a big 3 and a 4th wave correction is inbound …
I love ratio analysis … X/Y. If X stronger then the chart goes up and if Y is stronger then the chart goes down.
the AMZN/BABA ratio is showing some signs of a coming bounce in the strength of AMZN vs BABA:
.618 retracement from the all time low of the ratio
a ‘basic’ minimum downside projection from the neckline of the ratio
bullish divergence on the weekly RSI …
as you can see … AMZN took the strength from BABA for about a year .. then they were neck-in-neck (shown as the H+S developing) then in June 2017 BABA took off and started to outperform …
will be interesting to watch … found it interesting this morning.
update to BABA – note the butterfly BUY that hit. we’ve rallied nicely and when we roll 3 waves into a new low, that’s a B wave and the move from 56 to 74 sure smells like a C wave. So, might want to take some off or close OR perhaps look for an SRC to short into the 52 zone.
Folks, what a battering for $BABA. The entire world that bought the largest IPO in history has been underwater since basically February 2015. Perhaps, only probability here, their fortunes are about to change (pardon) the pun …
You can see below we have some nice MATH = MUSIC= VIBRATIONS coming into play 50-52.
Folks, what a battering for $BABA. The entire world that bought the largest IPO in history has been underwater since basically February 2015. Perhaps, only probability here, their fortunes are about to change (pardon) the pun …
You can see below we have some nice MATH = MUSIC= VIBRATIONS coming into play 50-52.
I had the chance to “chat” w/ JC today and was really watching the EUR vs AUD set up and he mentioned – $BABA. Full disclosure – I am not long this security as it really hasn’t been on my radar screen. I have been monitoring it w/ the correlation to YAHOO which had come down into my target zone after this post: http://www.seeitmarket.com/yahoo-stock-pullback-yhoo-price-targets-watch-14035/ . I did notice the bounce in YHOO around my target level.
But this is simply about square roots and, as a technician, one must seriously pay attention to them … period.
I took a quick look at $BABA and my “eye” is trained to see the classic AB=CD/thunderbolt pattern and I labeled it. Then I ALWAYS check out the square root of the high and … well take a look at the chart.
Square root targets ON TOP OF “normal” projection techniques and/or “typical” Fibonacci retracement levels are “wonders to behold”
Enjoy …
One last … in order to travel one full cycle around the Square of Nine you do the following:
Take square root of a number
SUBTRACT or ADD 2 (this pushes you around the wheel)
Resquare that number .. you have now completed one full rotation around the number.
If you want you can do Square Root +/- 1.618 …
And, since you’ve read this far the Square of Nine is a square root calculator but it’s also a planetary projection technique. TILT … well folks that’s what the Great Pyramids did – to a major degree. So, take the square root of a number and then PROJECT a planet that many DEGREES and watch what happens. Just saying …
Anyway – here’s the chart.
where are the moving averages, oscillators, bollinger bands, clouds and blahh blahh ….?
folks, this is the largest IPO in history AND it’s got the beat of music to it and, hopefully, the charts below will prove it .. if you don’t believe it, that’s cool. you might not believe me, but these initial “geometric seeds” will be responsible for EVERY future turn in this stock …!
as soon as $BABA opened I went to the charts to watch the action ….if you go back on my twitter feed you’ll see I said look for turns in around 90 minutes. WHY? well, folks, defy the human condition and do the work … PRICE equals TIME and TIME equals price. at major turning points THERE IS ALWAYS A CORRESPONDING RELATIONSHIP with a TIME AND PRICE confluence. the HARD part is that it is either EXACT or it’s a multiple of 1/1oth, a square root or music and geometry but, trust me it is there … period.
in the chart below there is a lot going on …
the open was 92.65 but during the trading minute shown a low 0f 90.06 was made….the chart tells me.
Square Roots and their inverse are at the root (pardon the pun) of ALL CYCLE WORK.
this is based on music.
the frequency of string is directly proportional to the SQUARE ROOT of it’s tension … and/or equal 1/square root of it’s length.
there you have it — square roots and 1/square roots. THAT IS THE KEY TO EVERYTHING …
now, if we take the square root of 1.618 we get 1.27. if we take 1/1.27 we get .786. That is NOT a fibonacci number … it’s an inverse of a square root of the golden mean … see?
if we take the square root of 90.06 = 9.49 and add them we get 99.54. THAT WAS THE HIGH TODAY OF BABA (ok we missed by 18 cents but you get the picture)
now we start down and use our simple yet very powerful projection method, taught to be Mike Jenkins, of 1/8 increments of the signal reversal candle. (SRC)
SRC – is the candle that takes out the candles that either makes the high or the low …
now we have used blue horizontal lines to show the horizontal levels of the 1/8 increments DOWN …
note price went thru the .5 (4/8) but bounced up from the .786 retracement and was resistance
note price went to 1.25 (1/8) and hung out there until ….OF COURSE, 90 MINUTES AFTER THE IPO THE MARKET INFLECTED.
so, once a SRC is made we PROJECT up and do the same thing, but this time up (the black lines). Note the BLUE ARROW. The SRC was the reason for the resistance …
Now, here’s the hard part … on this 1 minute chart we have 90,99,92 as PRICE components and those numbers are going to spin out their own cycles …our inflections will occur when multiple time cycles that have spun out from today all come together … that’s the hard part, keeping track of them.
I’m going to be interested in September 30th …
the square root of 90.06 = 9.49 and, well, PRICE = TIME = DEGREES.
So, something might move 9.49 degrees and if a PATTERN in PRICE is present then perhaps we’ll have a trade.
just like we project PRICE 1.618 or 1.27 or equality we can do the same thing w/ things that move in degrees.
BABA first day of trading
additionally, below, you’ll see what we’ve shown before — the angle of ascent or descent is key to deriving the true trend lines. in this case we had a 88 degree move up and guess what … the market bottomed 88 minutes after the first trade. YES, that’s a coincidence … (?)
BABA angles …
one last … note the chart below. THIS FIRST INITIAL IMPULSE MOVE UP WILL BE THE ROOT OF ALL FUTURE TREND LINES AND ANGLES …
THE BABA square
ENJOY THE WEEKEND .. what an amazing country we live in and what an amazing story for the $BABA team …
