Johnson and Johnson - ready to choke on a Q-tip.

The chart of Johnson and Johnson (ticker: JNJ) is clearly gone exponential.  You think this will last?  My model says "think again".   This is a typical a-b-c pattern.  It is corrective, not motive even though it has been going higher.   I've referred to it before as "ying yang".  I should not even have to label the A and B waves.  It should be obvious.  Now look at the C wave.  It is clearly 5 waves up and the 4th wave was a triangle.  This thing has "major collapse" written all over it and this is the kind of "can't go wrong" stock that pensions and insurance companies think it is safe to invest in.  This is the result of a rising credit component of the money supply.  Wait until that credit cuts off.  This chart will fall like a $2 pro on payday.

"But when".  That is always the question.  People always want to play it right up to the hilt.  I get it. While I cannot give exact times, the zoom in chart below is what I expect to happen.  In words, it is possible and perhaps even likely that the peak is already in.  After red 4 we got 5 small, increasingly tired looking waves up.  That satisfies the need for a 5th wave.  While red 5 could turn out to be just 1 of 5, I think it is already done.  The strategy is simple: short it right here, right now and then cover if it goes above $102.  But then be ready to re-enter the short at ~$105 or $106.

This is how the pension funds and the 8% annuity promises will get broken.  The managers of these funds will say "we thought that we were safe investing in these commodity names, people have to eat and brush their teeth and do their laundry, right"?  Of course people have to do all those things but the chart has gone exponential and the population has not.  How will the fund managers answer that question?  Clearly they will look at just the facts that support their decisions and everything else will be declared and act of God, force majure, whatever you want to call it.   But I'm telling you this is a completely predictable situation driven by a pump and dump money supply that consists of fiat currency and fractional reserve banking.  I am writing this at the recent peak of the markets, not after everything has already collapsed and looking in my 20-20 hindsight rear view mirror. 

So when it all collapses, please refer back to this post.  When it goes boom, it was not an act of God or anything else except the obvious, predictable (and predicted) collapse of a debt Ponzi of historic magnitude which is being run by the US federal reserve for the benefit of the global elite who have already made plans to weather whatever shitstorm ensues as the Skyfalls.  They have even taken to storing seeds for themselves in out of the way locations and at great expense.  No explanation has been given as to where the money came to build these things.  Move along now, nothing to see here, nothing unusual.  The main tool that supports this pump and dump scam is a federal reserve controlled, fraudulent money supply (that is a must read post by Mish) consisting of fiat currency and fractional reserve banking.