Boeing Aerospace likely ready for major reversal.

The nature of a company's cyclical earnings doesn't change very much.  As you can see from the chart of Boeing Aerospace (BA) below, it flies high when the credit is flowing and crashes like a 747 after all engines flame out during the down phase of the so called business cycle (which is really nothing more than the credit cycle).

I count wave 5 of this massive expanding triangle as being complete.  Worse yet, the market is treating it like a NASDAQ stock, not the DJIA stock that it actually is.  Why do I say that?  Because, like the NASDAQ, BA has already peaked and already traced wave 1 down while the Dow Index and S+P 500 are just now peaking.  What is happening right now on BA is most likely vee type wave 2 back up.  This is very typical for 2nd waves because during the 2nd wave the herd has not recognized that the market direction has actually changed yet.  That's why Prechter calls 3rd waves "the point of recognition".  That's when the fear escalates.  That's when the VIX begins to come alive and that's when put options thrive.

It looks like the C wave of the retracement is actually an ending diagonal in the throwover phase.  By now you should know what most likely comes next...

Of course the safe way to play this thing is just to short it outright.  You will end up making 80-90% over the next couple years with high liquidity.  But for those looking for the profit potential of leverage, I really like the Jan 2016 deep out of the money puts.  Given the rate at which I expect the chart to fall, these could well be in the money by expiration.  I like the fact that the spread is low and that they are potentially liquid as shown by the open interest.  If these can be picked up on Monday for something in the range of .75 then I think you will do very, very well with them.  I would probably not hold them until expiration.  I would let the coming 3rd wave turn them into $3-$5 contracts and then take profits while a sideways 4th of 1 happens.

Of course for the more aggressive gambler there is always the Jan15 100s in the low 80 cent range.  On ridiculous sale now for limited time only.

The coming crash is likely going to be very harsh on BA investors, at least if as modeled by my wave count. The expanding triangle does not generally complete until it goes back through the lower rail.