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29 March 06 The Quantum Nature of Fractal Growth and Decay - A Short Review Since March 2002 It has been an extraordinary trip from the lows of March 2003. The slipping, stuttering start from the traditional October low of 2002, the end of a recurrent 4 year cycle, was telltale at the outset of the structural weakness in the last 3 years of valuation growth. US equities unit valuations will perhaps never again be as compressed by debt and the fractal patterns so elegant in their evolution. A recap of the daily fractal evolution since March 2003: 50/125/50 days:: x/2.5x/x taking the Wilshire to the first top on January 26 2004 and ending on 29 Jan 2004. A 39/97 daily fractal pattern :: y/2.5y to the lows in August 2004. The 97 day fractal was internally composed of a z/2.5z :: 28/70 day pattern. The 28/70 was extended upwards to a 28/70/56 z/2.5z/2z pattern with 56 days becoming the new base. This base started a 56/140/107-112(112 was the secondary low):: T/2.5T/2T day pattern whose end coincided with a 11/27/27 day curvilinear decay fractal. From the low point of this 25 week fractal Wednesday 29 March is day 110 of either day 107 or day 112 if the final day matches the length of the preceding cycle. The concurrently evolving decay fractal count is 11/27/21 of 27. The last two recurrent 107-112 day replica fractal patterns 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/ 27 13 Oct 2005 to 24 Mar 2006 Growth 12/30/24 Decay 11/27/21 of ? 27.... While some of the fractals mentioned above share 1-5 days, the integrative picture is one of repetitive quantum proportionality - over and over. A nonlinear event followed by a deflationary phenomenon of historical proportion is at hand. Gary Lammert |