Apple Stock and Gold Just Triggered a 2013 Stock Market Crash
With the Standard and Poors 500 (S&P 500) just hitting new highs, we are beginning to hear a common concern — volume is low and this is bearish. Overall total-dollar volume is lower now than it was during the financial crisis. In fact, if volume starts to spike higher now, this will be a big warning sign.
Apple (Ticker Symbol: AAPL) needed to hold $419.00 per share and since it broke through that level on April 17, 2013 — the next support level for Apple is $353.00 which would be another 15% down from its current level. In fact, this is signaling the S&P 500 to follow suit with current projections putting the S&P 500 at 1280 by Summer of 2013.
Gold has lost nearly one-fifth of its value this year alone and more than 10% since Friday — the worst decline since the early 1980s. Gold had its spectacular plunge — a two-day drop of 13% — the correlation between gold and the S&P 500 has now triggered the start of a 2013 stock market collapse of at least 20% — fundamentals are now breaking down on all asset classes.
Rumors that the Fed will cut its quantitative easing within a few months isn’t helping matters either.
The stock market falling 20% or more is typically nothing for long-term investors to fret about — historically, it’s a once-every-five-years occurrence and it’s due now!
In the last century, gold has run up only be to trounced in a massive sell off. It happened in 1915-1920, 1941, 1947, 1951-1966, 1974-1976 1981, 1983-1985, 1987-2000 and in 2008.
Gold isn’t wrapped up in 1930s economic theory — the reality is that gold is just another Wall Street pump-and-dump investment — gold really is is a barometer of fear.
You don’t need to have an advanced degree in economics to understand the fascination with the shiny stuff — gold is the dummy’s hedge.
Tags: 1930s Economic Theory, 2013 Gold Collapse, 2013 Stock Market Collapse, AAPL, Apple, Dummys Hedge, Fed, Gold, Gold Collapse, Massive Sell Off, Pump and Dump, Quantitative Easing, Sell Signal, Summer of 2013, Support Level for Apple, Wall Street, Worst Decline Since the 1980s