Saturday, April 21, 2012

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


  CS. 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.

  We were battling with Google's valuation and Housing Bubble for quite a while before and now it is time to bring our charts back.

David Gurwitz of Charles Nenner Research: Silver Cycles Have Bottomed and Gold Cycles Close

  Among other things discussed with Jim Puplava is Charles Nenner's Call on Oil going higher - Lithium, Rare Earths and Graphite will be in focus again.

  Where is the connection between the Apple, Oil and Junior Miners? Apple's Top will signify the important turn in the market place - we do not expect economy to be allowed to go bust again in the election year - but if even Apple is not immune to the gravity, the Oil prices will start to be felt more and more. We expect the talk about the QE coming back with the first signs of weakness, the usual remedy against even potential Deflation will be the lower US Dollar via running printing press - more QE.
  Catalyst for the Juniors with solid projects in Gold, Silver, Copper, Lithium, Graphite and Rare Earths will be the simple fact that you can not print any of these commodities. M&A activity in the sectors must confirm our observations - industry insiders know better where the real value is.
  Canadian Venture Exchange Index daily chart below is one to watch now - we are close to the October's and December's Lows. Change in leadership in the market place and sector rotation can even beat the juniors' weak summer market seasonality this year.

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