26 May 2005

Today marks day 200(2x) of a second growth fractal with a 100 day (x) down
going base first fractal sequence which was perfect in its composition: 29
days (y) 72 days (2.5y) {subtract one for double counting}. The major US
equity indices are currently at a lower high than both the January 2005 and
March 2005 peaks. At this probable valuation saturation level, negative
sentiment has nearly vanished. The daily news reflects a booming housing
market, a higher revised first quarter GDP, and strong growth by selected
consumer stocks such as Costco. Forgotten are the overwhelming pension, junk
bond, personal debt, forward consumer saturation, and global wage problems
that are clearly a gravitational loadstone to the US macroeconomy.

A reinterpretation of the REIT index RMS shows a curvilinear top fractal
sequence of 18/44/36 with the top day at day 36 and thereafter a reversal
downwards a few days ago.

After day 200 (2x) of a second fractal with a down going 100 day first
fractal base (x), expect .5x of fractal gravitational forces to have their

G. Lammert