No sooner than we all go home happy last weekend after the Fed pontificated that the recovery was moving along better than expected and easy money was no longer guaranteed, that the latest employment numbers (released last Friday) sandbagged the market. So, who sandbagged the Fed? The stock market had its worst drop since December 2011. Bonds reversed and of course, Gold rallied. AAPL stalled with its worst drop since last September.
Speaking of AAPL, once the darling of the counterculture and the underdog to Microsoft (formally known as the evil empire), it has taken its mantel. The combination of the recent charges of abusive working conditions used in the Chinese production of AAPL’s products and the Feds anti-trust suit for collusion with publishers are subtly eroding its cult-like, do-gooder status. This is not to say I don’t love my IPAD 3 making my high- end laptop feel like a dinosaur, but feeling good about buying products from a company tainted definitely has an impact on its bottom line. Keep an eye on other PR foibles as AAPL is responsible for much of the gains in key indexes. Any miss-step will be felt around the world.
Meanwhile, the key stock indexes, gold, and some key sectors are at unusual and extremely powerful inflection points... Let’s go to the video
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