GE Update

Here is the link to my previous GE post.  Again, my current model theme seems to be holding: GE finished a conspicuous 4th wave triangle and then peaked into a 5th wave.  It has subsequently moved below both the top and bottom rails of the H.T. and that is the official confirmation that the 5th wave is over.  In other words, the peak at $27.10 can no longer be counted as just 1 of 5.  It is in fact 5 of 5.

I was hoping for a more dramatic break down of the H.T. with a gap.  Perhaps we will still get it with a slight count adjustment as shown below.  I do not know which is right, but we will know soon.  Either the waves will pick up speed rapidly next week right from Monday's open or we will get a small (blue) backtest of the lower rail or the lower and upper rails will be broken back up into as the 2nd wave modeled by the red line plays out.

If the red model is the one, I will be buying more of those GE puts if someone will sell them to me for 11 to 12 cents again.  They are going to be so very sorry they did that.  Those Jan 2016s have a ton of time left on them and when you start off at 11 or 15 cents the multiples of 100% gains clock up pretty quickly.  I suspect this trade could rival my all time best options play which was AIG $5 puts when the shares were in the low 40s still.  That was a 66x win.  If the bottom drops out of this thinly traded stock market like I think it will, I could do very, very nicely in this deal.

Folks, listen up.  GE has an altman z score of only 1.53 as of today after a year long effort to sell off nonperforming assets and to raise cash.   That level means that the company is a leveraged mess which is in financial distress even if the admissions have not been made yet.  The efforts to recapitalize this corrupt shadow bank have been way too little, way too late.  In my opinion, GE is the AIG of the coming crash.  Be sure to look at the competitive comparison on the right hand side of the linked web page.  GE is huge in size and really vulnerable, just like the biggest banks in the world.  It is too big to bail.  When it goes down, it is going to fall hard.