Wednesday April 16, 2013
Europe Heads for a Depression This is another article confirming my prediction that the world is entering the Recession of 2013-2015.
Will Apple drop by 50% Here is another clue of things to come this fall, just how fast a tech darling can fall from grace.
After reading numerous blogs and ideas, I have settled on Ramki's analysis being the preferred count. Given the extreme move Friday and Monday, it had to be a third of a third wave which is his conclusion. And the trend is down. Again, I respect intellectual property so am referring readers to his analysis. This suggests remaining positions in anything remotely resembling a commodity play should be exited as gold hits 1420. In fact the rebound here is extremely weak with gold up $8 this morning and oil down, again. The drop in oil as we have mentioned many times was the prelude to the world wide deflationary crash of Fall 2008. Here we go again. The good news is that with this perspective in mind we can to to cash, and hopefully profit from the expected drop in prices.
This means there are much much lower prices ahead for gold and silver. I suspect the same thing is true for crude oil. This would be a good time to read or re read my post from last Friday April 12, This time It's Different. I point out that the frenzy of building accomanying the oil boom is happening again, and will end badly as it did then. Our post yesterday of HAL SLB CAT WTIC makes that point pretty well.
As I remarked last Sept 18, it is easy to exit positions in a period of calm, stocks are still there,whatever upside may be left it is simply not worth the risk, we suggest going to cash. I just noticed stocks down over 150 points.
Gold and silver plunge is well underway, oil is just beginning its downward spiral. Do not delay in taking defensive action.
We have written about preparing for The Recession for the last few years, it is upon us now. More later.
We will have some strategic ideas on how to profit from this. We will also be discussing different ways to protect or hedge such positions. Thanks for reading The Market Perspective.
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