the origin of trend lines …Facebook

IF you believe that EVERY thing is vibration (some do, some don’t) THEN you might believe that stocks bounce around according to the energy they VIBRATE from their IPO and/or key inflection points (highs and lows, etc).

IF you also believe that the PATTERNS I post every now and then are governed by geometry THEN you’ll start to see and understand that the most “basic” yet fundamentally important aspect of what we are doing is based on 30,60,90 degree angles.

FAR too often we just use TIME or just PRICE and draw trend lines or “static” time cycles w/ a cycle tool.  Does that work? Sometimes yes, sometimes no BUT the key here is to SEE the chart (HINT HINT take off all the lagging indicator bullshit) and just look/study a chart based on PRICE and TIME.

FB .. has changed the world man.  Cool .. but to me, it’s just a chart and a powerful chart.  ZERO swing low has been broken (on close) and I recently sent in my submission to Andy @seeitmarket for an update of a post I did using LOG trendlines and to BUY at 88.  I’m updating it because we are “converging” from the top and bottom (LOG scale) and it’s going to go either way. (Guess what, I don’t claim to know which way..)  But, it’s something to take notice …I’ll send the link once it hits the presses.

So, after doing that post I decided to draw some pictures before heading out on my new Stand Up Paddleboard.

  1. Find the KEY first initial impulse move (up or down)
    1. that key impulse move will define the geometry of ALL moves in the future. It’s the rock hitting the water and causes the waves ….
  2. Use a drawing tool and connect the highs and lows
  3. Get out a protractor and draw a 90 degree angle.

That’s it .. now, simply create squares.

***NOTE: FB has “never” closed (weekly basis) above the center trend line (the median and YES that is where we get the Adam’s Pitchfork). Note the blue boxes … every time it “touched” the center trend line it was rejected …NEVER closing above.

Now, someone w/ a fundamental background please tell me what P/E, multiple, forward earnings and all that other crap has to do w/ that trendline generated from a square?

One last, if you want, use PLANETS to draw trend lines.  Yes, planets .. folks, the planets are causing all the energy/vibrations anyway. they NEVER change speed (heliocentric) and leave footprints all over the place.  I’ll use Saturn, Jupiter and Mercury on $CMG and lets see what happens.  PROMISE I HAVE NEVER DONE THIS BEFORE …here’s what I am going to do:

  • CMG IPO DATE: January 26, 2006
  • MOVE SATURN, JUPITER, MARS 10 degrees HELIO and MOVE PRICE 10 degrees up. Where they intersect, draw a trendline.
    • from the IPO you can use the “O/H/L/C” to draw the trendlines.
  • Turn on Dark Side of the Moon
  • See what happens

Bart

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$CMG update w/ @seeitmarket

@seeitmarket is one of the best places to get market research.  being a part of the @seeitmarket team of contributors is a blast and an honor. thanks Andy and have a great Thanksgiving Holiday.

Here’s the latest update for $CMG.  Posted back in Feb that a top was coming. Hit my target area perfectly but zoomed up to one more high.  More than likely would have been stopped out at entry. But note … it smacked right into the 180 degree square of nine target.

enjoy, let me know if you have any questions.

Is Chipotle’s Stock Chart Broken? (CMG)

Bart

this Mexican Food is HOT ($CMG)

CLIFF NOTES: well we looked for a top in/around the 610-620 level and it hit and fell 140 bucks.  BUT – it gapped threw the pattern to new highs. I still see a 5 wave count and would bet that this stock is at 250 bucks vice 800 in a year but that gap has 1 of 2 messages.  Crazy, unbelievable strength or one final exhaustion gap up/near the highs.  Strategy here is simple .. if long, enjoy the rid but cut bate if we ever close below 580.

Last, take a look at the chart below w/ volume … pretty interesting that every 13 weeks for the past 2 years a spike in volume has occurred ….hmmm.

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