The One Hundred and Fifty-Two Year US Equity Great Second Fractal Cataclysmic Collapse: 5 March 2010: A Fractal Replica of 11 October 2007?
Though the Federal Reserve has grossly distorted the normal activity of supply and demand in the debt markets, buying over ten months 300 billion dollars of US treasuries ex nihilo, the equivalent entire annual quantity normally available for equity speculation and money based structural support, a review of two years of readily available weekly and monthly trading valuation patterns for the US CRB and composite indices of US , European, and Japanese equities, nevertheless, easily demonstrates currently occurring saturation areas along the tops of the money supply based asset valuation trading curves.
Will money entering and exiting at these markets' saturation areas occur nonlinearly and predictably according the quantum principles of saturation macroeconomics?
For the saturation macroeconomist/scientist who follows the simple mathematical quantum fractal patterns, the next three weeks in March 2010 will be among the most interesting days and weeks of asset valuation/fractal time unit observation. A spectacular 152 year nonlinear event is expected to occur in the third week of the next three week trading period. March 2010 is the 93 month of a 46/92 :: x/2x monthly pattern starting in October 1998 which began a major extension of the 70/140 year first and second fractal series for United States equity equivalents with extensional successive debt-money bubbles in sequentially the PC-internet industry, the real estate-financial industry, and now the central bankng industry.
Expected is the cataclysmic (beyond October 1987) nonlinear asset (equity and commodity ) devolution trading event that will define and validate the science of Saturation Macroeconomics.
The 93 month second fractal is made of a 14/35/28/19 of 21 month ideal x/2.5x/2x/1.5x fractal series. March, April, and May represent the terminal three months of the 19,20, and 21st month ideal fourth fractal.
The 28/19 third and fourth fractals of the 14/35/28/19 of 21month series is configured in a 34/84/68 week fractal with the Wilshire apogee at 11873 on 11 February 2010 of the third fractal's 2x or 68th week progression.
March 2010's Wilshire has two base fractals of 22-23 weeks and 19 weeks starting in October 2008 and March 2009 respectively. The ideal weekly counts of the second fractals to these two base fractals are 22-23/54 of 57 weeks and 19/35 of 38 weeks respectively.
For aurophiles, an interpolated 11/28/22/14 of 17 week fractal (x/2.5x/2x/1.5x) matches the Wilshire's weekly end point and the CRB's similar weekly end point.
A reflexic ideal 20/50/40 day :: x/2.5x/2x fractal allowed the science of saturation macroeconomics to exactly and prospectively predict 11 October 2007 as the Wilshire's nominal high occurring on day 40 of the third fractal.
5 March 2010 showed minutely gaps much like 11 October 2007. 5 March 2010 represented the 20th day of the third fractal of a 10/25/20 :: 2x/2.5x/2x reflexic fractal series (a 0.5 time length exact fractal proportionality of the 11 October 2007 series). Unlike 11 October 2007 which ended(as predicted) near the low of the day, 5 March ended near the high which suggests that a 10/25/25 day or x/2.5x/2.5x extension is possible.
The 46/93 month or 70/152 year daily fractal decay series could be 15-16//(10/25//20/15 ) days :: y//x/2.5x//2x/1.5x which elegantly contains both the 10/25/20-25 possible extension and the mathematical 10/25/20/15 day classic 4 phase series and all interpoated in a 15-16/34/34 days or y/2-2.5y/2-2.5y decay fractal.
The possible terminal fractal daily pathway:
From 5 March 2010 a 3/7-8/6-7 day decay series for the Wilshire would encapsulate the next 14 trading day period. Two days down would complete the first three day first fractal. A surge for three days might complete a x/2.5x/2.5x :: 10/25/25 day final saturation high with lateral movement in a tight trading range with a low for the second fractal in 5 additional trading days. A final lower high for the third fractal in 3 to 5 days with a massive nonlinear event on the 13th and/or14th day of this 3/7-8/6-7 series.
The US transportation index, which led the US equities into the 2002-2007 valuation expansion, disproportionally benefited from the dynamics of a nonsustainable system whereby American paper (debt) was exchanged for transported and distributed tangible Asian goods. With China's realization that the US Central Bank(the third money-debt expansion element of the post 1998 140 year second fractal extension)can create money-debt-paper at will backed by no real economic activity and that America's consumers are debt saturated, the lower low gapped area in the transportation index that occurred between 26 and 29 September 2008 from 2160.08 and 2156.09 will not be filled.