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25 March 06 The Recurrent Ominous Curvilinear Fractal Decay Pattern of 11/27/19 of 27 days.... Will there be a replica of the preceding 25 week pattern and its terminal curvilinear fractal decay pattern of 11/27/22-27 days with a low and secondary low at days 22 and 27? The equity valuation pattern, the integrative barometer of the complex debt-money-asset system, will unfold its deterministic fractals this next week. The matching last two 25 weekly fractal patterns in daily units for the Wilshire: 29 April 2005 to 13 Oct 2005 Growth 12/30/24 Decay 11/27/19 of 22 13 Oct 2005 to 24 Mar 2005 Growth 12/30/24 Decay 11/27/19 of ? 22 The secondary low for the first weekly fractal pattern occurred on 20 October 2005 for an ideal 11/27/27 decay pattern exactly matching the 1929 primary fractal devolution. If, like 1929, this is the beginning of the primary decay sequence, it is expected that the devolution will proceed to day 27 or 5 April 2006. Time will tell. Interestingly, using a starting base from the ideal terminal 27th day of the preceding weekly fractal ending on 20 October 2006, a 19/45/45 day:: X/2.5X/2.5X maximal fractal growth sequence can be identified for the Wilshire. A maximal two fractal growth sequence of 13/33:: x/2.5x can be identified for the CAC/DAX/and major US composites. If last Friday was the secondary low conclusion for the Wilshire, it will be perfect from a fractal perspective. Having been so stated, case for a final day or two of valuation lateral wards activity could be made so that the daily length from 29 April to 13 October 2005 equaled the length from 13 October to the final secondary and secondary) top. The first 25 week fractal series was two days longer than the second fractal series. Most would agree that qualitatively the equity markets grow because the money supply -expanded principally by consumer, corporate, and governmental debt - is growing. But what has caused in the last recent year the great composite Wilshire's valuation fractal patterns to behave in such replicating patterns with nearly perfect daily growth and decay periodicity within the two 25 week units? Very regular periodicity in nature is a harbinger of occult and preeminent nonlinear change. A very constant rate of slow atrial fibrillation in the elderly has the same portentous deathly meaning that the loss of beat to beat heart rate variability has in the very-at-risk unborn term infant. Under terminal stress, excess catecholamines, the human body's stress chemicals smooth out the variability that characterizes health. Mounting stresses, seemingly small in individual components, when accumulated in sufficient amounts, cause the nonlinear earthquakes and erupting volcanoes. Small straws added in a linear fashion to the camel's back finally reaches the.. the..very.. point where the animal's vertebrae snaps asunder. Before the snapping sound, the straw burdened dromedary's pace becomes...measured... and... very very regular.... Linear stresses, linearly accumulating debt..massive debt...unprecedented debt that has produced no capital improvements for production of exportable useful items...and linearly over produced houses, against the relatively lower wages that characterize the new American service worker...are continuously exerting stresses on the linearly increasing composite valuations of assets. While wealth may rotate to and fro among the asset components, causing transient blow-offs in individual elements, taken as a whole, asset valuations significantly including that of the currency unit - linearly ascend. (The currency unit which has done poorly with relatively great depreciation year after year will have its blow-off valuation increasing days again, just as it did in the thirties where paper was valued so much as to be kept in the mattress banks of one's own home.) As stresses from the linearly increasing debt and overproduced asset accumulate day after day.. toward the last few years.. towards the last few months, towards the last few weeks, towards the last few days...very very near the 148 year breaking point, the equity dromedary, feeling the ever growing burden of little straws added to his back, steps in discrete paces....... very measured... and....very regular. The fractal pattern above, the fractal pattern again below may well represent the regular periodicity that characterizes stressed natural systems - just before their ...nonlinear... breaking point...... 29 April 2005 to 13 Oct 2005 Growth 12/30/24 Decay 11/27/19 of 22 13 Oct 2005 to 24 Mar 2005 Growth 12/30/24 Decay 11/27/19 of ? 22-27.... Gary Lammert |