Trade Alert – Selling a Pop (and Deep Dive on Apple and Gold)

Howdy and good day.

Apple’s now up 15% from the recent lows. As noted in yesterday’s Kiss & Tell transcript, there’s a lot of money ready and starting to flow back into tech and Apple seems to be part of that rotation. Keep in mind that there’s a lot of weakhanded retail shareholders who bought above $500 and as we get closer to their cost basis they will use that as an excuse to sell.

The question for Apple now becomes whether or not the institutional money moving into it will trump the retail shareholders who sell it as it gets close to their cost basis. From here to $500 though, as long as the markets don’t reverse and pullback big, it’s probably clear sailing for AAPL. Momentum favors the bulls for now.

Meanwhile, gold and silver have rebounded strongly from yesterday’s weakness. Feet to fire, here’s what’s going on with the metals right now-

The banks and governments want the price of metals low and are trying to force the paper gold and silver prices down. That has backfired badly, as people like you and me around the world immediately took advantage of the lower prices and the recent crash to load up on physical metal coins and bullion.

There’s a real disconnect between the price and action in the paper and the physical world right now and that gap has to close one way or the other. Either the physical prices have to come down and stabilize or the quoted spot paper prices have to go up. And again, the real reason I’ve gotten so aggressive about owning physical precious metal bullion and coins this year is because of the wild currency wars and aggressive attempt at debasing every major fiat currency around the globe. Right now all the forces are coming together to likely force higher prices on both the physical and paper markets.

Finally, one small trade to report as I’m going to trim about 1/10 or so of my FB into today’s big pop. Sell pops. Buy crashes.