When it comes markets? Everyone has a system:  Elliott waves, Gann Angles, stochastics, the list is endless.

Yet fractals are less commonly followed, so we value (in the extreme) when our long-term read  The Fractal Economist (TFE) honors us with an occasional heads-up.  Here’s what he shared as a post Saturday morning:


The end 11 June thru 12 June 2020 Dead Cat Bounce (use DJIA as a representative Equity Composite example)

The 5 minute fractal mathematical pattern of the ’terminal’ (after 3 PM) Thursday-Friday 11-12 June 2020 DJIA ’Dead Cat Bounce.’

The Case For The Patterned Science of the Asset Debt Macroeconomic System

The Global Asset Debt System Macroeconomic is deterministic, is counterbalancing, and is self organizing and is defined as a pattern science by self-assembly of regular
fractal mathematic patterns of composite major asset class valuations. The Global asset Debt system is simply too enormous of a system for governments and central banks to have a substantial effect, although the effects of the 2008-2009 historically unprecedented global intervention can be qualitatively observed in the ‘bending’ of fractal groupings’ and the expected fractal nadir valuation point. In late 2008 the US undertook 13 trillion dollars of money printing, quantitative easing, zero treasury rates for 5 years and the assumption of CDO related toxic assets – all bi-partisanly passed within three days by the US Congress and with likely an equal amount by the Eurozone, et. al. Without the intervention, the 2/5/5/3 monthly fractal grouping reveal that the March 2009 global composite equity valuation low would have occurred in September 2009.

From this September 2009 the ideal global composite equity low – unassisted by governmental and central bank massive intervention – final monthly fractal series
completing (to this point) a US 1807 36/90/89 year Fractal Series and the 9/20/12 year 1982 second fractal subseries of the 1932 89 Year US Third Fractal is 26/53/53 of 53 months. The third fractal subseries within the final third 53 month began in December 2018 is composed of a 3/7/7/5 of 5 month or 11/26/26/17 of 18 week fractal series.

The End Thursday – Friday 11-12 June 2020 DJIA 5 minute Fractal Math:
Starting after 3PM pm Thursday: for the DJIA …
base first fractal: 7/15/10 = 30 (5 minute units) : x/2-2.5x/1.4-1.6y (using second fractal/2.5 = 6 units as ideal base length)

The second fractal is composed of two fractal subseries 7/18/10(3) and (3)9(11)/17(17)
Starting after 3PM pm Thursday: for the DJIA …

base first fractal: 7/15/10 = 30 (5 minute units) : x/2-2.5x/1.4-1.6y (using second fractal/2.5 = 6 units as ideal base length)

second fractal composed of two subseries 7/18/10(3) and (3)9(11)/17(17)

The (5 minute units) fractal series is 30/57 units :: x/2x

There are 79 (5 minute) trading units in the trading days.

Over the next 320 (5 minute) trading units, expect an historical nonlinear devaluation of global equity and commodity and gold and bit coin value.


Dire?  Well, Yes…

Now, for those not quite tracking, this may not make a lot of sense.  But, the Fractal Economist (who is a trauma doc in real life) can be more-completely comprehended if you take the time to read two books:

Mandelbrot and Hudson’s “The Misbehavior of Markets: A Fractal View of Financial Turbulence.”

The other (because TFE is a doctor…) is Jerome Groopman’s 2008 book “How Doctors Think.”

Doctoring – and making money in chaotic markets – are some of the most difficult of metal disciplines to master.  Which is why we quite publicly laud (and applaud) his extremely generous contributions.

Which (for those reading the ChartPack on Peoplenomics today) looks like an eerily similar call for chaos this coming week.

There are 12 trading units per hour.  The markets are open 6-1/2 hours per day, or 78 trading units.

All that remains is to divide 78 into 320 units.  This is about 4.1 trading days.

So, Collapse on Thursday, then?

My personal planning window is to expect a massively correlated hyper volatility event (MCHVE).  Such an event may feature a one-day market move in excess of 3-thousand points, and as much as  double that.

This is not to claim that such events WILL occur.  Only that a prudent investor may wish to consider such possibilities in advance of events. Eleevated risk may not be suited to your temperament.  Horses (and cash) are hard to “put back in the barn” once they get out.

Write when you get rich,

George@ure.net