GE breaks down 15 month support line

GE is breaking down in a manner closely aligned with the model provided in my previous GE post.  Folks, look at the way that orange, up-sloping support line was taken out - sliced through with a ninja blade (as always click on the picture to get more detail or download it to your local machine and use Windows picture viewer to zoom in). That was a breakdown "with gusto".  Average volume since the Jan 2014 sell off has been about 15 million shares per day.  On a couple days where a lot of that breakdown occurred, volume spiked to 36 and 40 million shares respectively.  Someone wants out of GE. 

 Another week or two of this and the market is going to get very, very nervous because somewhere in there is going to be a big gap down that will be impossible to overlook.  This is when the markets are going to begin not to show just the nervousness of late but actual fear.  You know why GE is being sold off?  Because the smart money knows that it is so deeply in debt that its puffed up earnings report means dick.  Everyone acted like the earnings were good with the CEO mentioning, "double-digit industrial segment profit growth ... and nearly $6 billion returned to shareholders".  What he means is "gutting the company of much needed cash because anything left in the kitty after the BK happens will just go to the BK court to divvy up among creditors".  Nobody is saying it but I have written it many times: GE will BK before this collapse is over.  It is a shadow bank involved in a vendor finance scam.  They will likely name some laws after Immelt in the future whose aim is to stop vendor finance on the scale of magnitude (structural to the US economy) from happening again.  Of course, you don't need laws if you have an honest money supply where the free market will take care of itself.

Well, the charts were telegraphing this well in advance and my blog is proof of this fact.  Now that GE is breaking down we should really begin to see some positive action in TVIX within a week, two at the outside.  And I don't mean no stinking 10 or 15%.  I mean it should start to move with gusto in that time period.  The wave structure should begin to look very motive.  Minimum expectation here is around $4.40 by mid August.