I don’t even know where to begin with this one. Cramer goes off the deep end again with his Fibonacci horseshit, something that is actively ‘studied’ by one of his TheStreet.com employees. He cites her ‘homework’ and determines the market might be running up against some ‘natural numbers’, that coincide with pinecones, suggestive of a market devoid of steam.
Lastly, towards the end of his video, he proclaims the market is fresh out of cash, making it indelibly hard for stocks to climb in such an arduous and oppressive environment.
So much for the new bull run just beginning.
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LOL! Higher we go, then.
fib levels are important but like all tools; they can be utterly useless in the hands of a dumb monkey
Finonacci levels are basically a way to objectively incorporate emotions into stock trading. Most people don’t do any fundamental analysis, and jsut buy and sell based on feeling. Fib levels correlate to when stocks “look” expensive or cheap.
That and the fact that if you draw enough horizontal lines on a chart, the stock is bound to change directions after hitting one of them…
Sir. Market flow is governed by algo trading. This isn’t the 1970’s.
The fact is that price generally finds pivot points around fib-levels.
Combine that info with some volume @ price analysis and you can see areas of max pain, gaps, where likely stops are, how algos/investors are positioned.
Its not a science, & there could be a self fulfilling prophecy aspect to it, but you’d be doing your money a dis-service to ignore technicals
Thank you for a good laugh.