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Apple Short Update #3 and General Market Overview

By Michael Nystrom | July 25, 2008

Back on June 2nd, I suggested (for entertainment purposes only) that gamblers might want to take a crack at shorting Apple's stock. At the time, Apple was trading around 186, and some called me crazy for wanting to short a stock in an uptrend. This was, after all, Apple, seller of the most popular technology products on the planet. But I had my reasons, and as I said it was a gambler's play. Which is to say that it was a calculated risk with a tight stop - the only kind of play a responsible gambler should make.

Apple drifted down slowly for a month an a half until the day I was waiting for: earnings. The stock took a big dive down to 147, before recovering smartly. As noted in the previous article, our target was in the 145 - 150 range, so we made out with a tidy profit of close to 20% in about a month and a half.

Mission accomplished, but what's the story on the stock now? Should we go long, short or just leave it alone? First let's review Apple's "story" and then take a look at a super long-term chart and see what we see.

Orwell Rolls in His Grave

After watching this, if you have any solutions, please post them below!!!

Huge Crowd For Ron Paul Speech in Austin, TX

Video: We are the Ones We've Been Waiting For


Is the Worst Over for Stocks?


Is the worst over for stocks? Robert Prechter's short answer (above) is "NO." His long answer is compelling, extremely interesting and includes insights into what you should be doing NOW to prepare for what's still to come. For the long answer, join his free economics & financial community, Club EWI.

The sign up link is at the bottom of this post, after my full disclosure notice:

The House of Cards - Ron Paul


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It’s Time to Protect Your Wealth

by Charles Zentay | November 9, 2007
ThinkInvest.Blogspot.com

What if the wealth we've created (and you've earned) over the last two decades was simply us “perceiving” ourselves to be richer? What if the U.S. economy wasn't driven by technological innovation and globalization but rather it was pushed up by the increased assumption of debt relative to GDP? And what if that increased debt drove asset prices higher and made us “perceive” ourselves to be richer, causing us to spend more even as we didn't create true wealth? And what if everyone figures this out before you do?

You've worked hard to build up your wealth, but it's now under more threat than you can imagine. Why? The stock market could crash 10-20% any day now (I'll explain throughout this article), but selling into cash and holding dollars leaves you exposed to the threat of inflation and stuck in a currency that is falling 10-20% a year. What can you do to protect your life's work?

Bernanke Starting to Look Dumb

by Michael Nystrom | November 9, 2007
Bull! Not bull

Part I

It was a bit nostalgic for me to see footage of Ron Paul addressing Ben Bernanke on live TV yesterday, as it was almost five years ago that I was first introduced to Ron Paul in the same way. Back then (February 27, 2002), I saw Dr. Paul for the very first time, live on CNBC as I was getting ready for work. At the time I didn't know who he was, but I was astounded by what I heard. He was addressing then Fed Chairman Greenspan on the Federal Reserve, and speaking plain and honest truths: "In many ways I feel that the system you have been asked to manage is similar to an Enron system..."

Enron had just recently gone bankrupt, so I couldn't believe my ears. He continued on, stating truths about the fraudulent Federal Reserve System that nearly everyone else in Washington actively seeks to avoid.

I was hooked, and five years later Dr. Paul is still at it. Yesterday he was addressing Ben Bernanke, hauling the Fed's polite euphemisms out into the sunshine, naming them for what they are: "...they don't say inflate the currency, they don't say debase the currency, they don't say devalue the currency, they don't say cheat the people who save...They say, 'lower interest rates.' But ... I don't hear you say too often, 'The only way I can lower interest rates is to create more money.' ...So my question boils down to this: 'How can we expect to solve the problems of inflation...with more inflation?"


Part II

I've had the pleasure and the good fortune to meet Dr. Paul and spend some time with him.


Turn off the TV and think!


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