GAUGE:

16 sts + 22 rows = about 4 in. (10 cm) in St st (k on RS, p on WS).

When you match the gauge in a pattern, your project will be the size specified in the pattern and the materials specified in the pattern will be sufficient. The needle or hook size called for in the pattern is based on what the designer used, but it is not unusual for gauge to vary from person to person. If it takes you fewer stitches and rows to make your swatch, try using a smaller size hook or needles; if more stitches and rows, try a larger size hook or needles. 

Making a Gauge Swatch

STITCH EXPLANATION:

K2, p2 Rib worked in rows (multiple of 4 sts + 2 additional sts) Row 1: K2, *p2, k2; rep from * across. Row 2: K the knit sts and p the purl sts. Rep Row 2 for K2, p2 Rib worked in rows. K2, p2 Rib worked in rnds (multiple of 4 sts) Rnd 1: *K2, p2; rep from * around. Rep Rnd 1 for K2, p2 Rib worked in rnds.

NOTES:

1. Front and Back are worked separately. 
2. The yarn color is changed to make stripes.
3. Turtleneck is worked directly onto Poncho.
4. Circular needle is used to accommodate the large number of Back and Front sts. Work back and forth in rows on the circular needle as if working with straight needles.

BACK
With longer circular needle and A, cast on 138 sts.
Work in K2, p2 Rib worked in rows until piece measures about 1 1/2 in. (2.5 cm) from beg.
Change to B.
Work in St st (k on RS, p on WS) until piece measures about 5 1/2 in. (14 cm) from beg, end with a WS row as the last row you work.
Change to C and continue in St st until piece measures about 7 1/2 in. (19 cm) from beg, end with a WS row as the last row you work.
Change to A and continue in St st until piece measures about 11 1/2 in. (29 cm) from beg.
Place a marker on each side of the last row to indicate beg of armhole.
Continue in St st with A until armholes measure about 5 1/2 in. (14 cm) from markers, end with a WS row as the last row you work.
Shape Shoulders
Row 1 (RS): Bind off 3 sts, k to end of row – you will have 135 sts at the end of this row.
Row 2: Bind off 3 sts, p to end of row – 132 sts.
Row 3: Bind off 2 sts, k to end of row – 130 sts.
Row 4: Bind off 2 sts, p to end of row – 128 sts.
Rows 5-36: Rep Rows 1-4 eight times – 48 sts at the end of Row 36.
Shape Neck
Row 1 (RS): Bind off 3 sts, k until there are 9 sts on your needle, join a 2nd ball of A and bind off center 24 sts for back neck, k to end of row – 9 sts on one side and 12 sts on the other.
You will now be working both sides AT THE SAME TIME with separate balls of yarn.
Row 2: On first side, bind off 3 sts,