GE update and broader implications.

GE is starting to make me wonder greatly if it is not forming an expanding wedge.  If you have been following my GE posts, I was concerned about the first triangle when it formed (red top circle).  I wondered several times what that triangle was doing in the count.  Now I think I see.  It was a 3 wave move down into wave 1 of an expanding triangle. 

If this count is right, GE is just a few days away from a rapid and dramatic reversal to lower lows.  Expanding wedges come with high volatility in the final wave since they tend to hit the opposite rail after hitting wave 4.   Most of the waves of the wedge had a triangle in the middle of them.  The one that didn't was nonetheless a clear a-b-c move.  If GE is moving down like this, the broader markets will be selling off hard as well.  GE is not likely going down like this solo.

I think this could be a very good time to pick up a few Jan 2015 $23 puts whose last trade was $0.28.  At this price a 4 bagger is possible.  The nice thing about these puts is that you know when to sell and that is when you see 3 big waves down which end by hitting or undershooting the bottom rail.  Once this breaks back up through into the channel you should probably already have sold your puts.

23.00

GE150117P00023000

0.28