JPM $hit the bed today.

JP Morgan's profit was off 15% when it reported today.  The market did not take kindly to the news but the charts told us it was coming long beforehand. I've been warning since January that my models for the banks were very near the peak.  Check out, for example, these charts from January 10th of JP Morgan.  Compare the monthly chart from the January post to that below.  As expected, the ending diagonal has broken down.  So the news is just going to get worse and worse from here on in.

Here's the link to my 3-12-2014 update on JPM.  The model there was clear: somewhere in between the then price of $60 and a peak price at the top of the red circle of $67, JPM was going to reverse and begin to collapse.  Please, please pay very close attention to the chart from that post!!  It is so important to understand that I am going to post it again below.  Look at that wave structure going all the way back to Y2K.  This chart is in the final days of the 5th of C.  At some point very soon it is going to break back down into the channel and when it does it will be a speedy ride not just to the bottom of it, but to a lower low than 2009.  That means below $15 and I don't mean a little below.  I mean a good, hard breakdown.  I think $5-$7 is clearly in the cards BEST CASE.  You know that I have long predicted that when the final collapse comes it will take some of the major banks down with it.  Why do you think so many bankers are dying and being killed right now?  For fun?  Coincidence?  I think not!!  The chart is screaming this at us:

BEFORE 2017, JPM will be $7 or lower and it could actually go bankrupt! 

Forget all of the numbers on their balance sheet.  It's all bull$hit, just like all government numbers are bull$hit.  JPM is probably leveraged 100 to 1.  This is how you get big in banking: leverage up in an inflationary environment (leverage is debt and that means debt based inflation), pay the CEO and other bastard con men huge salaries and fees from the Ponzi Profits, and then let it all collapse onto the backs of the taxpayers.

Below is a zoom into the Daily chart. Put a fork into JP Morgan, it's done:

Keep in mind what Meredith Whitney said in 2012 about JPM's last loss, it was due to proprietary trading, not normal hedging. "Proprietary trading" is elite speak for "derivatives". In other words, Morgan is nothing but a leveraged gambler who counts on every backdoor advantage possible.  Read into that whatever you want and it will likely be true.  JPM is like every other bank, leveraged to the wazoo.  They are neck deep in derivatives contacts which are not working out as planned.  The leverage with these "weapons of mass financial destruction" is outlandish.  The losses will begin piling up now and at some point they will be required to mark their "assets" to market.  That's when, as Buffett likes to say, the tide will go out and we will see who has been skinny dipping.

Mark my words: before this is over at least one or two of our biggest banks will collapse and have to be broken up.  Instead of fines and hand slaps, someone is going to jail over it.  Congress is going to have a field day grandstanding in front of the public in their public grilling of these criminals but of course congress is totally corrupt and in bed with the CEOs.  Congress has known about this debt Ponzi all along and either got paid to shut up or got threatened by the bankster mob.  Yes, they employ contract killers, you can be sure of that.  I know I would if I was a corrupt SOB like they are and literally trillions of dollars as well as my reputation, my high lifestyle, my assets, my freedom and yes, even possibly my life hung in the balance.  If the mob which is literally about to lose everything ever gets a hold of these guys they will be killed in the streets.

Sounds ridiculously over the top right now because there is no news about it but the charts are screaming it into the faces of anyone who can read them.