Benjamin Borden's "Best Canadian Stocks"

Fibonacci, aka Leonardo of Pisa (c.1175-1240), had some really good insights. Of these discovering (or rediscovering) the ratio of 0.618 stands out. You can see on the graph of the TSX below that the index seems to be obeying this mysterious ratio as an upper limit. The graph also shows that our current bounce that we are in right now used the 0.5 ratio as a jumping off point. If these ratios bracket our short-term range, then we should expect our current bounce to take us at least back up to the old highs ~12,300. At this level things get interesting: either a collapse back down, or a break through on to new highs.

One has to be careful not to read too much into “squiggles drawn on a graph”, but the appeal of Fibonnaci in this example is undeniable. You have to give him some credit. What a guy!