22  November 2005 

56/140/135 of 140 - 5 more to the March 2000 Secondary Top


Inherent in the nature and character of fractals is the concept that
within the mechanistic evolution of smaller order unit scale fractals
there are consistently emerging patterns that will proportionally be
replicated at unit scales of greater order and be predictive of
larger fractal evolutions. This notion and the recurrent ideal
patterns of valuation fractal evolution at various orders of
magnitude, which have been determined by direct inductive
observational analysis, provide the basis for the non complex
quantitative predictions of future behavior. Along side this concept
is the construct that asset valuation fractals do represent
integrative valuation growth and decay processes of 'ideal' money
investment allocation where the terminal portion of an antecedent
fractal at transition points may serve as the 'front end' of the
subsequent fractal, with both possible sharing of adjacent time
valuation elements and interpolated fractal patterns, the latter
having their own internally consistent nodally determined evolutions.
Ultimately the retrospective view is 20/20 and the fractal patterns
'make not only perfect sense' but represent the most optimal pattern
for maximal growth extension of investment money in the context of the
non complex principals.

Well recognized are the qualitative and empirical historical valuation
cycles where assets slowly and linearly rise in concert with money and
credit growth, followed by periods where asset valuations undergo
relatively rapid and nonlinear declines in concert with a concurrent
rise in the value of cash and quality secure debt instruments. Those
with backgrounds in the study of psychology have forced these
mechanistic valuation growth and decay characteristics into their own
necessary notions of mass psychology where the herd changes its
positive psychological bent at the valuation apex, thereafter becoming
sequentially more negative, ultimately panicking into hysterical
liquidation. The patterned order to the growth and, in particular, the
decay valuation cycles argues against such a white, darkening, and
black psychological origin as a causal impetus. It is paradoxically,
nevertheless, from the collective operating minds of a composite
population of saturated equity buyers, saturated consumers, saturated
able debtors, and saturated risk taking lenders - in concert with the
maximal allowable overvaluation of various asset classes - relative to
various quality debt instruments and cash - which are produced by the
interactions of that composite dynamic population - that ultimately
produces the deterministic growth and decay equity and asset valuation
fractals. At the point of saturation inflection, diversion of
investment money into cash and quality debt instruments becomes the
optimal allocation pathway for available and convertible financial
resources.

The ongoing psychological dynamics of the composite population are
merely reactionary epiphenomena in response to the quantitative
deterministic process of optimal money investment allocation whereby,
to reiterate, money; credit; and its reciprocal, debt and debt
obligation; and asset growth evolves to a saturation point - limited
by the totality of debt obligation, wage growth, asset overvaluation,
and commodity inflation - and thereafter decays to a new equilibrium
point that represents a rebalancing of asset, debt, and money relative
valuations in the context of a realigned and diminished need for
consumables, durables, and services relative to ongoing debt default,
excess assets available to the marketplace through antecedent
overproduction and debt default, ongoing debt servicing obligations,
and decreased service and production jobs and the wages those jobs
produce.

Today was day 135 of a maximal 56/140/135 of140 growth fractal with an
interpolated 52/130/130 day sequence. Nodal points are easily
recognizable at days 140 and 130 of the second growth fractals of the
respective fractals. A nonlinear break characterizing second fractals
is evident at day 120 of these two interpolated coevolving second
fractal sequences. There are 5 more trading days to the ideal maximum
growth of the third terminal 140 day fractal.

The 56/140/140 fractal is so completely fitting of a fractal
conclusion to the final phase of the 148 year second fractal that
began in October of 1998.

A weekly sequence of 34{x}/74(with 68{2X} as a secondary lower top)/67
of 68{2X} is now apparent.

The second fractal sequence peaks at week 2X or 68 and ends with a
nonlinear drop on week 74 characterizing, as described in the main
page of the Econnomic Fractalist,the hallmark of a second growth
fractal. The third growth is 68 weeks in length or 2x with a 12/30/30,
x/2.5x/2.5x, maximal week progression. The 12/30/30 week progression
directly correlates to a 56/140/140 day progression.

Euphoria is high; the psychological state is at manic levels. There
are five trading days to a predicted high. The devolution will be
mechanistic and the fractal sequel will be determined
by the antecedent fractal evolution from October 1998.

Gary Lammert