4 July 2012: The Wilshire’s 4 October 2011 Final June July August Third Fractal Blow-off Sequence

 

The 2005 Predicted Lammert  Growth and Decay Pattern: the Wilshire of the  debt-asset system empirically self assembles itself  into a 2009-2011 monthly Lammert 4 phase fractal series. 

(What daily economic news produced this pattern?  Answer: None. … just as the daily economic news has no impact on the evolution of the current Wilshire’s daily valuations …  the valuation pattern self assembles  within the context of the one quadrillion valued global debt-asset system.)

From the recent unfolding self organizing and empirical data provided by the Wilshire’s daily valuation charts and the Wilshire’s more important countervailing monthly and weekly fractal patterns of the intermediate and long term US debt market, the Wilshire’s final 4 June 2012 third fractal will be composed of two three phase subfractal series.

The first subfractal three phase series is a 4 June 2012 6/14/4 of 9 to 10 day Wilshire pattern. Day 9 or day 10 of the 6/14/9-10 day fractal should return the Wilshire to a valuation level of 13700-13900.

Thereafter, the second subfractal three phase series composing a Wilshire blow-off pattern of 6-7 weeks will occur. This will take the Wilshire to its final pre historical crash high valuation in August 2012.

The global debt asset macroeconomic system has been evolving mathematically to its inevitable deterministic 150 year second fractal historical transition time area. August 2012 is the inflection time area for the transition described in the Main Page of TEF ….. “This site has been constructed because of the expected inevitability of a major sudden phase transition to occur ……

A sudden second fractal nonlinear reordering of the debt-asset macroeconomic system will mathematically occur.  While the timing will coincide with European system failure,  the nonlinear collapse of US non sovereign debt assets involves the larger global dysequilibrium of too much leveraged forward consumption and resulting unrepayable debt whose collateral are falling oversupplied real estate valuations and a contracting number of needed jobs and a contraction of total wages those jobs represent – wages that support the debt load.

A deflationary implosion of historical proportions is at hand. But first the two subfractal three phase series equity 4 June 2012 third fractal blow-off.

The Precisely Deterministic Self-Organizing Debt-Asset Macroeconomic System: The Wilshire 4-21 June 2012 15 Day First Base Fractal Has Been Completed: The Wilshire Blow-Off Second and Third Fractal Cometh

The 13 June to 21 June 2012 interpolated averaged 7.5/18.7/15/11-12 hour ::    x/2.5x/2x/1.5-1.6x Lammert fractal series.

The incipient evolution of the 4 June 2012 third fractal of the 4 October 2011 54 day base fractal shows within its fractal progression that an equity blow – off pattern will occur (and finish):

the 4 October 2011 three phase Lammert growth fractal series,

the 2003 three phase Lammert growth fractal series,

the 1990 three phase Lammert growth fractal series,

the 1982 first and second Lammert growth fractal series,

the 1932 three phase Lammert growth fractal series,

and the 1789 US two phase Lammert growth fractal series.

Global money will preferentially flow into the relatively (much) stronger US equity system and money will temporally exit US debt instruments driving US long interest rates temporarily higher and flow into the US equity composite system. This is the qualitative reason behind the US equity blow-off.

But it is the mathematical fractal pattern development that shows a blow-off in  US composite equities is coming the end of June and July, August, and perhaps early September. See the previous posting for the initial 2/5/4/3 day Wilshire blow-off.

The incipient 4 June 2012 third fractal is composed of two conjoined and interpolated Lammert fractal series. The first is a blow-off series of 2/5/4/3 days.
A underlining slope line is curvilinearly up, that is, the slope line from day 1 on 4 June 2012 to 21 June 2012 does not contain all of the intervening valuation points.
The final 3 day blow-off of the 2/4/5/3 day fractal which represents 17 trading hours was the second fractal of an interpolated 9/17/15/11-12 hour fractal series.

The macroeconomic debt-asset system is an integrated precisely mathematical deterministic paradigm.

A 9 and 17 hour, first and second fractal series, would have as an ideal mathematical x/2.5x pattern 7.5 and 18.7 hours. The averaged fractal pattern would be 7.5/18.7/15/11-12 hours :: x/2.5x/2x/1.5-1.6x.

This combined interpolated series completes a 15 day (first day is upgoing in valuation) base fractal (note the underlying slopeline from day 1 to day 15 contains all intervening valuation points)  with an expected blow-off sequence of 15/30/16-30 days :: x/2x/1.1x-2x.
Look for a nonlinear drop on day 30-31 of the second fractal. The third fractal should start thereafter. The peak valuation time frame is still the end of August 2012 or early September 2012.

The Wilshire’s 11 October 2007 nominal high was about 15940 or about 2025 points away from the Wilshire’s 22 June 2012 closing valuation.

It will likely be bested.