Look at the Western Digital chart. [WDC]

WDCs chart looks like a chart of the exponential rate of hard disk density increase over the pas 15 years.  But now it is looking not just a little bit peaky but scarily so.   The reason I am posting this is really not for the present day reader but rather for future readers to think about.  In today's economy the people have accepted that company stocks have value.  In fact, most think they are more valuable than the money of their country.  If your herding instincts immediately pushed back from this notion, let your logical side ponder this: do people with money saved for retirement have it in cash under the bed?  Do they have it in cash in the bank?  Or do they have it mostly stored in the equities of private corporations?  Yeah, that's right, most people's retirement money is foolishly tied up in the stock markets.

So here is the message I want to send to forward generations: some of us back in 2014 knew that the stock market is not a store of wealth but rather a scam contrivance of the military industrial complex.  It was a Ponzi scheme from day one, and they were the Ponzi operators.  The stock market is an implementation of an old scam known as the honey trap.  While this scam usually employs the service of a prostitute, the stock market is run by Wall St. whores so I think the term still applies.

Like any good scam, the stock market has had a good run.  It has convinced the population bubble known as boomers to store their entire life savings in what are essentially Madoffian paper promises.  Madoff had a good run too.  The people who gave him their wealth to manage had similar aspirations as those in the US stock market: make my money grow in value without me having to work for it.  This did not work out for Madoff and it won't work out for the US stock markets either.

The only problem with these kinds of claims is that a scam can go on for a very long time before it finally collapses.  To most people, things look normal because they really don't know anything about anything even though most people have a strong opinion about everything these days.  Ignorance is quite in vogue these days.  Of course, it is hardly the fault of the people.  Where are most people to learn the real truths of this world?  From the con men running this bullshit show?  The recent link I posted on the abortion clinic scam should be enough to make most people wake the Hell up about what is going on.  Everything the government says and does is a lie, and as you can see with the Obama (p)Residency, the lies are getting larger and more obvious to spot over time.

In any case, I find that the end of the con is very near in charts like that of Western Digital.  The charts do not lie.  They can be misread, but they can't lie.  But the WDC chart is a pretty easy read.  We have a rising wedge to form A and then a significant pullback into B and now a much larger rising wedge into C.  The length of A is the length of C on the log scale.

If this were pretty much any other business I wouldn't bat an eye at predicting a massive collapse of these shares.  But this is Western Digital.  Yeah, they had second rate products back during dot bomb but their stuff is really good these days and they have pushed seagate (ticker STX) from the forefront.  STX market cap is 20 bn USD.  WDC is 25 bn USD.

WDC has been providing good value to people all this time.  As a result,t hey have 5.38bn cash and only 2.41 bn debt.  Trailing PE is 16 and forward is 12.  PS 1.64, BK 2.82.  These are quite respectable numbers across the board.  From every outward appearance, WDC is a solid buy.

So why can I confidently predict a major collapse in the share price of this company over the next 5 years?  Why am I confident enough to write it down and promise never to erase this post?

The answer of course is the chart.  This thing started taking off back in 2001 when the government came in and saved us from the deflationary crash we deserved to get for dot bomb.  It began to tank in 2008 because of the near collapse of the global monetary system.  Since then it has recovered, again into a giant C wave (according to my proprietary observation about the special meaning of rising wedges).  The 5 rail bumps are now complete.  There is no 5th wave throw over yet and that could still happen but after that I am confident, based on the chart pattern alone, that it will again come crashing back down to at least $24 and perhaps much much lower.

These words will sound like heresy to the man on the street.  And to be honest, I don't know what will cause this thing to come crashing back to Earth; the charts do not tell me this.  They only tell me that this whole thing was some kind of a-b-c three wave counter trend move which will eventually unwind.

We will know when the great unwind has begun when the top rail breaks out and then is broken back down into.  Or, if the chart cannot even do a throw over, we will know when the lower rail breaks down.  Or maybe the throwover was just very tiny, having come and gone already:

But for such a successful technology company to suffer such a dramatic reversal I can only believe that the overarching economic environment won't just be bad, it will be ugly of a kind not seen before on this planet.

Of course, it's all laughable today.

Sometimes I really do wish I'd never learned the power of Elliott waves and their broad applicability.  Ignorance would indeed be bliss.