19 July 2010

Internal Structure

Deterministic chaotic systems can be modeled, not that one can truly model them, i.e. get at the equations governing their behavior, but one can surf their determinism. One can assume the ability of the stock market to bring equity up commensurate to the capacity of the company to do this, is part of this.

I still think there is a real recovery in the US markets. These happen despite debt and any other counter-reality actions. It is just sloshed about by the inflationary exercises. It may be a reason why the market has not crashed (yet)...the source of the washing back and forth around 10,000.

The hints of a recovery not happening caused a reaction backwards, like the hint of a Fed funds rise I discussed. These are inputs, what are called fundamentals into this computational machine. The machine itself has its own computational structure which asserts itself. I believe this still lives.

The issue is the deflation from cheap dollars. But when I say the recovery may be a reason the market has not crashed, I mean more than a supportive belief, because when the flight to safety/risk off happens, it is like there will never be a recovery again. But the internal computational structure of the market itself supports it.

It is always worthwhile keeping an eye on the trend in EUR to see what the state of the debt relation exercises. Debt is not a bad thing, but it needs asset growth as well or else you get bubble collapses. I started this post with a comment about deterministic systems.

Well what about forex. One could model determinism introduced into it. There are regularities which appear from time to time, like certain behaviors at certain time periods, but if you find them, you will find as well they disappear and disappear in interesting ways.

© 2010 Guy Barry - All Rights Reserved.