Apple 10 Day Mother Of All Gaps!

About the only “FAANG” stock to still take a hit is Apple. Every hedge fund loves this stock and Warren Buffet owns billions of shares. The huge open gap to the upside is more like an exhaustion gap, and it will get filled again. Facebooks gap may never get closed as these growth stories do come to screeching halts and even disappear!

Yes, I’m very bearish on all asset classes except for the US dollar. The world investors are sitting on a Death Cross that they know little about, and they may wake up once the stock markets crash right along with gold.  I keep gold ratios on about 10-15 asset classes which are all in-house indicators that tell me when any asset class is out line, to the cash price of gold. This Gold/Apple ratio now sits at a ratio of 6:1 the most expensive reading in my records. For the last 2 months it’s been under 7:1, so that tells me the Gold/Apple ratio is hitting a brick wall!  Fundamentals will always tell you the wrong things at the extremes and Apple is no different.

 

Apple soared again as it’s now the third trillion dollar company to do so. We will find out in a few days if this  peak will hold as investors keep buying stock on fundamentals of a few high priced smart phones.  I anticipate and implosion of Apple’s stock price, as this world is going to suffer a deflationary decline that will stun the majority thinking that this cannot ever happen. It’s happen before and it will happen again, and the only difference is if readers themselves, “see it coming”. Investors who are in bubbles do not recognize they are in a bubble so they will never see crashes coming. Those that refuse to heed financial history will be doomed to repeat the same mistakes of the past over and over.  Apple investors will pay dearly for their complacency, as every 2 bit hedge fund is holding Apple shares.  There are “sell stops”piling up below and smart traders know how to trigger them.

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