THE COMING ECONOMIC FRACTAL PRICE DECLINE IN STOCK MARKET!

THE COMING COLLAPSE OF THE STOCK MARKET IS BASED ON THE KURTOSIS OF THE STOCK MARKET OR THE GROWING FAT TAIL OF EXTREME PRICE DROPS.  THE CENTRAL ISSUE WITH THE TRADITIONAL MODELS WITH THE STOCK MARKET IS THAT THEY ARE BASED ON A STATISTICAL MODEL OF NORMAL DISTRIBUTION OF PRICES.

THE PROBLEM WITH THIS ANALYSIS IS THAT STOCK MARKET PRICE MOVEMENTS ARE BASED ON EXTREME VARIATIONS.  THE MARKET POSTULATES A NORMAL DISTRIBUTION AND MODEL ARE BASED ON THIS ASSUMPTION.  THE MANDELBROT MODEL POSTULATES EXTREME PRICE VARIATIONS THAT SELF-REPLICATE ON THE FAT TAIL OF PRICE EXTREMES.  THE ISSUE IS THAT THERE IS NO SHORT TERM NORMAL SCALE IN A WORLD THAT ARE RAGGED AND DISTORTED.

THE CURRENT STOCK MARKET MODELS ARE BASED ON AN OUTDATED MARKET PARADIGM. THEY CANNOT WORK WITH A MODEL THAT REPLICATES ON THE EXTREME AND IRRATIONAL PRICE DISTORTION CAUSED BY 15 TRILLION IN FLIGHT CAPITAL, WORLD WIDE SHADOW BANKING, DYSFUNCTIONAL OPEC CARTEL, GLOBAL DRUG TRADE, AND MACROECONOMIC CYCLICAL FANTASY.

THIS IS THE SAME PROBLEM WITH PREDICTING WINNING LOTTERY NUMBERS. THERE ARE NUMEROUS STATISTICAL WEB SITES THAT PREDICT WINNING NUMBER BASED ON STATISTICAL HISTORY OF WINNING NUMBERS.  WHAT IF WE WERE TO CLASSIFY EVERY COMBINATION OF WINNING NUMBERS AND TRACK THE WINNING NUMBERS?

THE  PROBLEM IS THAT WINNING LOTTERY NUMBERS FOLLOW A FRACTAL PATH OF EXTREME OUTCOMES.  THERE IS NO NORMAL DISTRIBUTION OF WINNING NUMBERS AND THIS IS THE PROBLEM WITH LOTTERY GURUS.  THE WINNING NUMBERS SELF-REPLICATE ON A EXTREME NUMBERS THAT FOLLOW CHAOS THEORY.  THE PATTERN CAN NEVER BE UNCOVERED WITH NORMAL STATISTICAL ANALYSIS. ONE WOULD HAVE TO  SUPER PROGRAM FRACTAL NUMBERS ON A COMPLETED MATRIX OF ALL POSSIBLE NUMBERS WITHIN A FINITE SET.

THE REALITY IS THAT EXTREME STOCK MARKET DROPS ARE NORMAL!