Using Your X As Well As Your Y, Fibonacci For Price & Time: MO

23 thg 4, 2016

This is a follow-up to using your X as well as your Y. Eleven days ago I wrote this: "The next Fibonacci time cycle is due on April 18, 2016. Does this mean MO will keep hitting new highs until this date? Will Fibonacci 1.272 ($65.06) be hit on this date? Who knows? But, I now have a clue as to WHEN something is likely to happen. It forces me to anticipate change."
As you an see from the above chart, April 18 did indeed usher in a new direction for MO. There was a completion of pattern XABCD, and the stock fell. I do not believe the point to where MO fell was random. If you look left at structure, this drop is approximately a 50% retracement of the recent uptrend leg.
From a TRADE-MAP approach, here is what I see: ("TRADE-MAP" means to me (first the letters in TRADE):
1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
Now the letters in MAP:
6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance. There you have it: Don's personal "TRADE-MAP".

In "Don's Top Ten Technicals", I use the elements of the "TRADE-MAP" approach: 1. The Ichimoku Cloud is still rising. 2. Prices fell, but the cloud provided price support, as well as did the structure to the left. 3. Prices are trading below the thick red Ichimoku Cloud Conversion line. 4. The thick red conversion line is falling. 5. The thick black line is the Ki jun-Sen baseline of the Ichimoku Cloud, which is falling. 6. The indicator on the top of the page is RSI / Stochastic , and this oversold. 7. The top middle indicator is vortex and it is weak, red over green. 8. The Top (bar-type) indicator measures the "phase energy" of the stock , and this is weak. 9. The red fractal arrows are down (not pictured). 10. Look to the far right on the chart, around $61.00. You will note a yellowish line on bottom (lips), with black dots above (teeth), and a blue line (jaw) above the black dots. Now, all three have reversed and are falling, correct? This is where I ask you to use your imagination and envision these three items as the "widely separated jaws of a feeding alligator". This is now a negative indication because the alligator is FEEDING in the downtrend. Altria Group is falling, and I believe it will consolidate until the confluence of technicals tells me differently. This stock pays a very good dividend (professional money managers like this), so look for an entry point when the cloud indicators and alligator jaws reverse.
Today's non-money quote, especially for you: "Christmas begins about the first of December with an office party and ends when you finally realize what you spent, around April fifteenth of the next year". I hope this has been entertaining and informative. May all of your trades go well. Don.