GE update: wave 2 likely complete. Only days before wave 3 down picks up speed.

Here is my previous post on GE.  It should be little secret that I am no fan of the company and no believer in its shares.  I think it will likely BK before the credit Ponzi is over.  I think those buying long term put (LEAPS) on this pig will do very well on them.

Per the updated model below, which is is perfectly in line with the model from the prior posts, I think the C of 2 wave is now over.  That means that GE has entered 3rd wave territory.

Note how wave 1 down broke down both the blue line (the long term resistance line) as well as the lower green line (2009 support line).   But first waves rarely if ever can break these strong support levels.  It takes the power of a 3rd wave to break down with enough conviction that the market changes direction.

This is coming, sure as I am sitting here.  The chart does not lie and this one is not difficult to read.  Yes, the wave 2 could still turn into an ending diagonal but the odds favor wave 2 being done already.  Wave 2 has hit the 50% fib.  An ending diagonal version would hit the 61.8.  But with so much growing turmoil in the world and now within the US government, the days left before the collapse begins with gusto cannot be many.

Another break below the green line and then the blue line will signal the start of the collapse, especially if it happens with gusto, a big gap down, and high volume.

Playing this one with high safety is very, very easy right now.  Just short this pig here at $25.85 and then cover your short if it goes above $26.40.  You risk a 2% loss for 20 to 100% gain.  That 10-1 ratio is worst case and it is the type of asymmetric bet that anyone can play for fun and profit.  Remember, GE is a bloated shadow bank that the Altman Z-Score says has a huge chance of BK within 2 years.