I don't know what it means but it sounds interesting. What does it mean?

I came up with this one because every time the Stock Market takes a turn down, people right away start comparing it to the 1929 Stock Market Crash.

Well, I thought it would be nice to know just exactly where in Relative terms we are in relation to that event.

From 1929-08-30 to 1932-07-08 is the time frame in which the infamous Stock Market Crash occurred.

In that time, the Dow Jones Industrial Average went from 380.33 to 41.22.

Somewhere within that time frame we can estimate our current relative position in Time within that frame of reference.

Taking into account the Economy of Scale and the given 2008 DJIA high of 13,058.20 and the value of the DJIA being 6,736.69 back on 2009-03-02; we can calculate our current relative position in the 1929 Market Crash Time Frame.

First we need to find the proper 1929 Market Value based on a relationship I've stated before in one of my earlier blogs, http://blogs.lotterypost.com/jadelottery/2009/02/truth-or-consequence.htm.

The simplified equation we need is, (Ln Y / Ln X) = (Ln B / Ln A); where X is the initial 1929 DJIA high, Y is some value within the time frame of the 1929 Market Crash, A is the initial 2008 DJIA high, and B is the market close for 2009-03-02, 6,736.69, below the 7,000.00 value.

If you solve for Y, you get the proper value the DJIA should be in relative terms for the 1929 Market; Y = X ^ (Ln B / Ln A). Plug the values in; they are X = 377.07, A = 13,058.20 and B = 6,736.69.

This gives Y = (377.07) ^ (Ln 6736.69 / Ln 13058.20), which is approximately 249.17.

Looking at the time frame of 1929-08-30 to 1932-07-08, there is a point in time where the value of the DJIA's daily close never returns to the value of 249.17; this occurred on 1930-05-11.

If this is truly a market in a crash state and the market is never to return to the close value of 6,736.69 back on 2009-03-02, then that would put our own date of 2009-03-02 in relative terms at a date of 1930-05-11 in the 1929 Market Crash.