11 January 2006  (posted 21 Jan)

30/75/75  -  x/2.5x/2.5x Maximum Weekly Fractal Completion


When will the fat lady sing.  Soon. Too soon. It would be much
preferable for the people of the world if the Federal Reserve and World
Banks could continuously monetize all of the enormous debt, pension, and
entitlement obligations that has been created by the historically
anomalous continuous yearly  positive GDP growth that has linearly
occurred through debt expansion during the last fifty years- but that will
not and cannot happen. As long as there is a significant private sector
subject to the conditions of profit need, ongoing consumption of goods and
services, employee  wages, and their own  pension obligations  -  self
feedback macroeconomic corrections will inevitably occur.

GM is the prototype of  of a formerly great private enterprise undergoing
feedback collapse.  Its debt burden and pension obligations are too great; its
profit margins are collapsing as Asian engineers produce a better product,
competitive even with the added cost of transoceanic shipping.
The overproduced housing industry will soon follow as ongoing consumption
of its widgets is being limited by the wages of entry level service
workers who must pay annual property taxes on overvalued domiciles.
Debt must be serviced and the co-conditions of the wages, cost of living, and
debt load of bottom feeders who provide the pyramidal base support for the
various speculative bubbles will effect the immutable feedback that rights the
imbalances.

The ghostly fat lady, reminiscent of previous fat ladies throughout
economic history, is on stage, up to the mic and  clearing her ample throat,
as the equities rise to their inevitable weekly fractal apogee. This
inevitable and deterministic action will conclude the positive
valuation activity of great right shoulder to  March 2000's
summation's head.  Last week a terminal maximal x/2.5x/2.5x weekly
growth fractal was identified. That 30/75/75 maximal weekly fractal is
set to reach its apogee .... this week - not last week. Verification
of this 30/75/75 weekly pattern can be accomplished by looking at the
TMWX weekly charts on the 3-4 year durations- and counting the weeks
contained within the individual growth fractals as determined by nodal
lows. The first 30 week duration is weighted summation of 34 and 23
week bases.

 The timing of this weekly apogee matches two other major daily
fractal apogees. For the sake of argument assume that optimal growth
for the March 2000 right shoulder is destined to follow an ideal,
nonstochastic, and deterministic x/2.5x/2.5x maximum weekly growth
fractal. Support for this notion is justified by the recurrent theme
of near perfect x/2.5x/2.5x maximal growth for smaller unit fractals occurring
throughout the right shoulder's evolution. To reach the optimal 3rd
fractal growth
 of 75 weeks, starting with a first base of 56 days beginning in August 2004,
a transposition was necessary for the third sub fractal.

The ideal sequence with a base of 56 days would be 56/140/140. The
second growth fractal did indeed end exactly on day 140. However, the
third sub fractal began with a base of 31 days. The ideal growth
fractal of this sequence would be 31/77/62-77.  7 July,2005, the day of
the misguided British Islamic youth attacks, did have a lower low than
the first 31 day base. This occurrence attests to the perspective that
major world events can have small, transient -but unsustained effects
- on market trading and fractal evolution. The next low occurred
exactly as fractally expected on day 77 in October 2005. The Wilshire
is currently on day 60 of 62-77. Notice  that the first high of the
third sub fractal occurred, also as ideally expected, on day 31, 25 November 2005.

The other concomitant daily fractal growth sequence is the often
identified 11-12/29-30/20-21 of 24-30 day maximal daily sequence. It
appears that the final blow-off for the right shoulder will involve
the simultaneous conclusions of the major weekly growth fractal
pattern and the natural ends of the two dominant daily sub fractal growth
patterns. The European and Nikkei equity market are also marching to
their own near time ideal fractal growth conclusion with a different base
sequence.

Every day of valuation growth toward the maximal natural fractal
growth  paradoxically, in relation to the devolution in 1929, shortens
the overall decay pattern. The fat lady will most likely be an
unbearably off key and shrill soprano, singing a very short piece as
compared to the 32 month devolution in from 1929 to 1932 and 2000 to
2003. Be prepared . Expect the unexpected.

Gary Lammert