The behavior of the stock market is in strict accordance with the Power Law. (Bak et al., 1992; Mantegna and Stanley, 1995; Sornette et al., 1995; Chen, 1996a, b; Stanley et al., 1996; Gopikrishnan et al., 1999; Plerou et al., 1999; Stanley et al., 2000; Gabaix et al., 2003).

When a stock price is poised at a critical point between two macroscopic phases, measurable dynamical structures can be observed on all spatial time-scales.

The stock market is a complex, non-linear, dynamic, non-ergodic system constantly poised on the edge — with large events being rare — yet simultaneously happening all the time.

Smaller events are more common than large ones, and have 'less impact' on the system when they do occur (Bak et al., 1995).

By viewing the market as a multi-fractal structure (Farmer,1999) — along with supposing a powerful analogy to fluid turbulence (Ghasgaie et al., 1996; Arneodo et al., 1998; Sornette, 2002) — The Fold Line Report seeks to frame markets as operating within a chaotic, yet cooperative system — with self-organizing tendencies manifesting in the form of large market events when co-existing with synchronized behavior (Sornette et al., 1995).