Saturday, December 15, 2012

Apple To Break Down to 400 and Gold & Commodities To Break Out on China Move AAPL, GLD, FXI, TNR.v, ILC.v, LMR.v, RM.v, CZX.v

  C.S. We Do Love all Apple products and have written The Letter to Steve Jobs about Electric iCar. It Is Such A Loss - he did not have enough time.

Lithium Drive: Steve Jobs’ Apple iCar dream - Mickey Drexler: "Steve’s dream before he died was to design an iCar.”

  But now we can see that this stock will go down and it will be fast - our target is 400, that gap needs to be filled. Apple has built almost perfect Bearish Reversal Pattern - Head and Shoulders and has penetrated the neckline. There is No Support until 400. Slightest Panic among investors which will come with the realisation that Apple is Not A Growth Story any more, but a Value Play will bring Over Leveraged Hedge Funds into the First Blood Bath of 2013.

Charles Nenner Calls For Silver and Gold Bottom - We Call For Apple To Cool Down AAPL, GLD, SLV

"If you are long Apple, please, do not worry - we have been right only a few times. Charles Nenner Call is a much stronger proposition for the market - he wasn't right all the time as well, but some of his longer term calls are worth studying at least. 
  We decided to make our Call on Apple, because we are totally in love with its products, were calling for Steve Jobs to make an Electric iCar for years, but do not follow the company or holding any position in its stock now - we are totally disconnected with its market. And still, we can hear about Apple every day everywhere, everyone and his grandmother have invested in it and it is the newly found "sure thing". Life has taught us a very expensive lesson - that once everybody has invested in a "sure thing" the universe will switch the deck. Now, when everybody is in love with it and indexes are moving everyday with Apple's market the company can not allow to make anything wrong. Margin for any investors' tolerance is so thin now - any step back will bring the realisation that Steve Jobs is not there any more. Once it happen, selling will ignite further selling and commentators will be crying on Bubble TV "we have told you so" - then it will be time to buy again.
  We never give any Buy or Sell here - only our observations of trends and participating companies. We are covering our journey in the search for the real value and long term trends shifting our world. We have started with Gold and Silver, moved to Uranium, Copper and Zinc and now following the Energy Transition to the post carbon world, when the cheap oil will be out. Our play is on the side of strategic commodities via Junior Miners. Gold and Silver names as a Real Store of Value, Copper and Zinc as  part of electrification and Lithium, Rare Earths and Graphite names  as the core critical materials play for the electrification of our transportation. Nobody is interested in this market now and we will pull another chart for your attention. More."

We will run more details later, stay turned. 

  US Dollar had a very definitive Break Down on Friday, if we will account for the Muted Reaction from Gold on the chart below - We Are Primed To Experience The Major Monetary Episode now. We All Know the Drill by now: Hit the Gold First and announce QEn+1 later. Actually it was even already announced by FED. Now they will Not Look at the prices of commodities and "transitory" Inflation, but will concentrate on Jobs and Long Term Inflation projections. It Is Just Great News for us - until They will Run our Country into The Ground. 
  US Dollar has made a very definitive Head and Shoulder Reversal Pattern on the chart above. We are close to the Major Move Downside now. FED will try to accommodate the Fiscal Cliff in its balance sheet which is expected to be extended by 2015 to 6 trillion. 

"Ben’s balance sheet was just $800 billion in 2007. It is now $2.8 trillion and is expected to grow to roughly a shocking $6 trillion by the end of 2015.  A few more years of trillion dollar deficits that are completely monetized by the Fed should ensure that our government’s creditors will demand much more than 1.6% for a ten-year loan.  Michael Pento"

  New QE4.0 will be done without Bond sterilisation - it is like QE1.0 was done - Pure Printing Press in Action and creation of US Dollars out of thin air.

Sci-Fi Movie Script: "Federal Reserve - Keeping The Strong US Dollar Policy From 1913 - Established To Serve and Protect" GS, JPM, BAK, C, HBC

  Gold, in our view, has quite the opposite to the Apple Story and is ready for the Major Move Up. All Bulls are exhausted, all Hedge Funds are chasing Apple - it is time for Gold fundamentals to shine again. We have a total mess in financial system now: FED will Not be able to stop QEn+1 now - All Western Financial and Banking System is Hooked on the Central Banks Needle of QEs to Eternity.
  All Markets are Rigged now, but you cannot manipulate large markets with diversified participants forever - Gold is building the  Bullish Wedge on the cart above - it is the Continuation Pattern in the Next Bull Leg Up.

Austrian School of Economics: The Gold Standard in Theory and Myth by Joseph Salerno

"Despots and democratic majorities are drunk with power. They must reluctantly admit that they are subject to the laws of nature. But they reject the very notion of economic law . . . economic history is a long record of government policies that failed because they were designed with a bold disregard for the laws of economics."
— Ludwig von Mises, in Austrian Economics: An Anthology

   "It is time for Education and Austrian School of Economics will the very good base for any well rounded individual. It is truly Amazing: How Our World Has Changed Even from 2005, just listen to the comments about the Gold price, US National Debt and Federal Balance Sheet. All Fundamentals are The Same - we have just moved from Billions to Trillions in a few very short years talking about Debt and FED.

  Gold provides the Golden Cuffs on The Government - It Is Not Able to Engage Private FED in order to create money out of thin air and debase the US currency, taxing the Savers and Expropriating Their Saving by Creating Inflation. Just remember How Much the Real Things were priced when you were  kids. More."

The History Of Money And Why US Dollars Are Issued By Private Bank - Federal Reserve System

  We will throw few charts and a couple of links: One guest of Jim Puplava is taking about Dow to Gold ratio dropping to at least 5. It means that with all QEn+1 DOW can Reach easily 15,000, but Gold price will be at 3,000 at that moment. Below is the chart showing the relation between the two Measures of Wall Street Health (DOW) and Real Wealth Preservation (Gold). 
  The very interesting observation one can make here is that Wall Street is making its money on the "commissions" and Turn Over of the Market numerous times between the Muppets (as introduced in our Sci-Fi Movie Script).
  It does Not Matter where actually The Dow Is - the Talking Heads on Bubble TV are generating Trades and Trades are generating Commissions, but general direction should be Up - to please the Servants in order to continue their Servitude to The Masters. More."

  The very important news last week was from China - there is some growth and maybe "The End of the World" will be postponed one more time. If it will be the case, the Toilet Paper - which used to be the Reserve Currency of Choice can still find some market in China with its population now of more than 1.3 billion people, but we think that the better Bet will be Gold and Commodities. 

  Chart above confirms our observations: FXI is ready to break out Up from the total Disaster of the last few years. Not a lot of people have noticed this move yet. Transition in China is over, now the Agenda there will be Growth - Growth at Any Price. State will be leading the Nation into the new Normal - like recently announced program of 36 million apartments to be built for the low income citizens.
  Do you need any more US Treasuries to make it? - No, We Do Not think so - you need a lot of Commodities like Copper, Zinc and Iron Ore among others.

Lithium M&A "Art of War": Talison Lithium backs $848,000,000 Chinese Takeover Bid, ILC.v, LMR.v, RM.v

"We have here the Fiscal CliffBillions in Subsidies to the Big OilThe Best Democracy Money Can Buy and The Pile of Never To Be Repaid Debt for our children. China has a military level long term planning and strategic plan to leapfrog the Technology of 19th century based 100% on Oil with Internal Combustion Engines (ICE) to the 21st century Technology based on Electric Cars with Diversified, Multiple Choices for the Energy Transition based on Distributed Local Energy Production and Smart Grid. More."

  Where the Money will go now, after they are going out of Apple apparently and USTs will be Next in this Trend? We think, that they will go into The Real Things, as usual, in times of The Great Uncertainty. Our Plays here are Junior Miners In Gold, Copper, Lithium, Potash, Graphite, REE, Zinc and others.
  The chart above of Junior Gold Developers provides some Hope - which is the dirty word in the investment world, but this is All what we have left now - All major Bull Legs Up has started from this position of total Desperation. While the Sector is totally Forgotten, Smart Money are accumulating Those Who Will Survive and have Goods in the Ground, Teams who can Develop it and Access to The Capital in order to make it All Happen.

Junior Miners - Prepare For a Great Bull Run!

"Nobody cares, Nobody is Buying - It Is The Best Time To Buy Junior Miners, but Only Ones that will Survive. Who will survive? It is time to dust off and Rub Your Own Crystal Ball and check what companies Insiders Are Buying - it can give you Some Indication where to spend more of your time.
  Call the company, listen to the story - if you Do Not Bother - send half of you money to Charity and keep the rest - you will be much better off. The Only Advise You Can Get From This Blog is on the right side of the page; and if you have spent less time making DD on the company you are going to Buy, than when last time you were buying your Flat TV - run away from the Buy Button.
  Talking about the flat TV and approaching Xmas Sales - It Is still an Enigma for us, that even after so many years, even for us here - it is still Always So Sweet To Chase the running up Stock, than to wait for the sign Sale. We do not like to offend any ladies reading us (usually they are much better long term investors), but some can say that you need to have some particular parts of you body in order To Act when it is necessary and Word seems to be Falling Apart again.
  Why do we Never rush to buy almost anything else rising in price, but stocks?! You can find a lot of Books on this one - yes you have to Read some Books - not just Internet Flash Instant Free information - it is Instant and Free. Take the advice you get with the same value you have paid for it. This Blog will qualify for the same quality - it is our Travel Book. In order to write Yours - you have to travel by Yourself. 

  Make Always you own DD, listen to the couple of Good Things and then make your move ... to the next page - we will continue to Share Our Own Stream of Consciousness. More."

  Just few weeks ago we were discussing the situation in Junior Miners with The Very Respected Broker in Toronto. We must say that he was in the Market for at least 5o years by now. We have suggested that we have the situation very similar to 2008, when All Juniors were priced for "'The End Of The World" scenario. The Gentlemen has told us: "I have never seen Anything like this in my Lifetime!"
  The Good and The Bad are All together and All Babies Are Thrown Out with The Bath Water by now on the chart above. As Lawrence Roulston has pointed out recently : "It's Time to Look at Companies, Not Markets." All Markets Are Rigged - Full Stop. Real Value, Real People and Real Stories are There - you have just to Find It.
  We need just 0.1% of the money coming out of Apple and USTs to lift all our Juniors to the Cruising Altitude with multiples to the recent Market Caps.


and more is coming now...

Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advice on this blog and there is no solicitation to buy or sell any particular company

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