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