16 May 2005

Tech Stocks Still On track

The tech stocks bucked the trend on Friday, May 13, 2005. While the Wilshire
5000(TMWX), which contains 95 percent of all equities including the tech
stocks, was appropriately down Friday consistent with the evolving terminal
Grand Trine: growth fractal, decay fractal, and inverse growth of decay
fractal - the tech¹s influenced by Dell¹s huge gap up of 8 percent added 0.5
percent on average. Are the techs¹ Friday gains fractally appropriate?

Yes, the techs¹ gains on May 13,2005 were most fractally appropriate, and
the inverse growth of decay fractal for the tech¹s, is still correct with
the NASDAQ composite inverse fractal having a potential 19/48-49/48-49
sequential day finale.

A look at Google, Yahoo, EBAY, and the NASDAQ composite all show the same
fractal pattern with slight variations in the length of the second fractal,
remembering the second
fractal can be 2 to 2.5 times in length of the first fractal base and is
heralded by a nonlinear gap downward.

These are the comparable daily growth fractal sequences for the four
entities cited:
(X/2-2.5X/2X)

Google 10(down going)/25/20
Yahoo 10(down going)/25/20
Ebay 10(down going)/25/20
NASDAQ 10(down going)/23/20 - with the nonlinear break between day 21 and
22 of the second fractal.

From an economic fractalist¹s vantage point this next trading week will be
very revealing. Is there enough horsepower of credit expansion via the
ongoing housing bubble to further extend the 147 year second fractal cycle
or does credit contraction now have the upper hand. An evolving
probable-dominant credit contraction - potentially caused by over 500
billion dollars of formerly solid corporate bonds suddenly and appropriately
declared to be junk and further caused by the realization of those bond
owners that like so many airline pension funds, repayment of the principle
of those newly declared junk bonds, will likely be defaulted on or if
repaid, if indeed at all, with pennies on the dollar- is causing nonlinear
earthquakes and tsunami¹s in the derivatives¹ debt black box that contains
trillions of dollars of erroneously made bets and hedges. 

G. Lammert