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