TBT TLT IEF

BONDS

The big talk right now is is bond yields and what's going on on the fed tapering and so on, my thought on all of this is very simple and I believe people are making a huge thing out of nothing, it was obvious that yield had to rise at some point it was obvious the fed could not buy 85 billion dollars worth of bonds on a monthly basis. SO is it a good time to buy some TBT or short the TLT and IEF? The answer is YES and I'm far from the only one with that thought. Things must normalize in the world again and where the US 10 year is at just wont work for anyone same with the stock market being so over inflated. So if you want to make some money over the next couple of months it will be a good place to be because the S&P 500 will be very volatile in the coming months and you would rather be first in the trade then getting in when its very over crowded. 

The once loved Shiney Yellow Metal Gold (GLD)

This is a tough one to talk about because if you think about it, no one knows why it ever went up. No one could say with 100% certainty why it went up, some said it was a hedge against inflation, others called it the over all fear trade. One thing we know now for sure is that it is not seen as the fear trade, when the markets are selling off, so is gold when the market is having a good day gold is not because people see more value in stocks than in owning gold. I am still a believer in Gold, I know I know you are saying i cant read charts and fundamentally gold is just plan and simply not working. I am not suggesting gold should be bought right now with all the money in your portfolio, but i don't think it has seen its all time highs for the next 5 years. Inflation may be getting a little more steady in the USA for the time being but if we look over to Japan it is a whole new story again, the same story as it was in the USA 2 years ago. I also think for the near time gold will have more downside and maybe even test the very important 1000$ level, it is currently at 1274$. In my mind though, the gold bulls will step in before it gets to that.
Also as a side note, don't be fooled by all the reports from China and India saying how the demand is sky rocketing, as much as it would seem to do with the gold futures, it does not.

Tesla "TSLA"

TSLA

What a crazy ride this has been if you're a bear or a bull on this company. This was once again the perfect example of going against what the street was saying about the company. It had a huge short float and no one expected the company to even earn an actual profit for the company and it did and the stock exploded to over 105% and doubling the market cap of the company blowing the shorts out of the water. It is also another example not to stand on the wrong side of innovation in the Valley. Now for some reason I have been hearing its the NOW all of a sudden the perfect short for David Einhorn the legendary Hedge Fund manager, which in my mind is ludicrous. I've read his book "Fooling some of the people all of the time" which is a great story if anyone is interested, I doubt he would take an interest in shorting a company like this, not compared to other companies he has shorted in the past so do not take that as a reason to do so if you do. That being said, we all know the company is very overvalued I mean it has a bigger market cap than Alcoa (AA) which is I mean come on just not possible. AA had earning in 2012 of  around 23 billion and a market cap of 8.33 billion and TSLA 2012 earnings of 412 million and a market cap of 12.03 billion. Think what you like on those figures.. but it does not add up no matter how you put it. But as we learned earlier in the year, don't get in the way of innovation, because CEO Elon Musk has not been able to do wrong lately. 

Pros and Cons of buying AAPL stock

Apple Inc.

There has been many things said about AAPL stock since september when it hit its stock price peak of an all time high 705$. And now it is trading at roughly 400$ a share which is almost a 43% decrease in price. If you've been holding the stock from around 600$ you are in immense pain right now and have a tough decision to make. To sell now and take the loss before it goes lower OR have you withered the storm and better days are to come? In my opinion it has nothing to do with any multiples (at which aapl is VERY cheap) or the next quarter earnings and revenue or even the biggest buyback in corporate history adding a 3% dividend. It all has to do with if you believe in the company being able to bring out products that will knock your socks OFF! My opinion is if you own it don't sell for the time being but if you don't you should maybe wait or buy a smaller amount if you cannot wait and want it a cheap price! As you can see with the chart i posted the momentum indicator "Williams %R"

 shows it being overdue for a decent bounce from oversold levels.