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The Economic Fractalist
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  • Saturation Reverse Fractals: 3 December 2010: A Case for the Peak Saturation Area (day) for Commodities and Equities 0 comments
    Dec 6, 2010 5:56 AM
    Saturation Reverse Fractals: 3 December 2010: A Case for the Peak Saturation Area (day) for Commodities and Equities

    Was 3 December 2010 the 11 October 2007 Secondary Peak for the Wilshire?  At the summit area reverse fractals become operative in the manner of x/2.5x/2x/1.5-1.6x.

    3 December 2010 completed a reverse fractal series for the FTSE, Wilshire, and CRB. Only the Wilshire had a higher high than its 3 day inverse base starting on 9 November.

    The 9 November 2010 reverse series 3/7-8/6/5 days conforms to and perhaps confirms the fractal mechanistic nature of growth and decay of the asset derivatives known as bonds, equities, and commodities - all based on the available day to day investment money which integrates the growing influences of credit expansion the contracting influences of debt default.

    The Federal Reserve's earlier November 2010 announced plan for the 9 month creation of 0.6 trillion dollars to bridge the 2011 deficit  propelled the Wilshire to a higher valuation on 3 December than would have occurred had the international  markets had to produce the 0.6 trillion to close the deficit -  if indeed the 'real' markets could produce that lending amount.

    Consider the Federal Reserve's power to create  this amount 0.6 trillion dollars from nothing, from nothing, from nothing to buy these long term bonds - that's the equivalent of  20 million 30,000 dollar jobs a year. .

    3 Dec 2010 also is the 2x or 13th day of a 6+/15/13 :: x/2.5x/2x growth found in the terminal portion of a 8/17/18 day growth fractal.

    3 December was the 30 day of a 13/31/30 day fractal for physical silver and the 74th week of a 35/74 of 84 week fractal with a peak at the 70th 2x week fractal. This is identical to the pattern for XAU.

    A low is projected for equities and commodities in 39 trading days concurrent with all time low short term and long term interest rates.

    After this low the chickens will come home to roost for the Federal Reserve's money creation 'policy' with the CRB surpassing its 2008 high as speculators drive commodity prices to all time highs providing a Wiemar moment for the struggling paycheck to pay check US middle class. From the low in eight weeks, a high will occur in commodity prices and equities in 107 trading days.
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