GE shares are at critical technical point

I'll be blunt: I don't care much for General Electric.  Like Toyota Motors (TM), they did not earn their productive capacity, they borrowed it.  The debt of GE is 388 billion vs 130 bn in cash.  Yes, they have improved their cash to debt ratio somewhat since Bernanke started pumping money into the economy (or should I say because Bernanke pumped all that money into the economy...).  Back in 2009 they had ~ 50 billion in cash and 500 billion in debt.  So they just need Bernanke to keep on pumping those new dollars into the economy for another, say, decade, and things will be right as rain for GE.

GE's sin is that it turned into a massive shadow bank which is why it needed a back door Bernanke bail out.  You might not hear about it in the main stream media but its the really big shadow banks like GE that we actually too big to allow to fail.  And so while they should have failed and gotten all new owners and all new management, the same old Klepticons are running the show.

In any case, have a look at the GE chart below.  I drew the bottom A-C line in a long time ago.  And at the same time I drew the B-D line based on nothing except the fact that it was parallel to A-C.  These ending diagonal type waves are made up of a series of 5 waves.  Each has a 3 wave structure.  So the A wave is supposed to be made up of 3 waves, as is the B, the C, the D and the E.

The charting software I use doesn't go back very far in time so the A wave is questionable in its structure.  But the B wave is clearly 3 waves.  I can make a case for 3 waves in C and there are clearly 3 waves in D.

So at this point, GE will either break out of the top resistance line and confirm that it is in a new bull market (which I have a hard time believing based on the economy) or it will bounce down sharply off the upper resistance line and start heading down into an E wave which could go all the way down if interest rates rise quickly and GE cannot roll its debt over (yes, it could easily BK!) or in a less extreme case it could go down to the center of the channel and then find a bottom and come back up (thus forming a bullish inclining double bottom).

Again, if GE goes down it will likely not do so in a vacuum.  Given the size of GE and the amount of debt it holds, this is a very key stock to watch to see how its chart plays out.  I give it 70% odds of suddenly turning around here and heading down.  I would given it higher odds than that but the wave pattern at the finer scale is not very deterministic.  Again, I will be watching this with interest to see if it bounces of the magick (sic) line drawn by the invisible hand.