The Golden Nugget That Makes Traders Wealthy Trading AAPL, RIMM And Gold Stocks

I know most Apple enthusiasts will be rolling their eyes with my analysis and that's fine because the rest of us need people to buy our shares as we unload long positions or sell Apple short .

All joking aside, the charts below clearly show some very interesting information you cannot afford to overlook. At minimum, take a quick glance at the charts which tell the full story on their own.

The Four Stages of Stocks

Markets are cyclical in nature. There is a constant process of expansion and contraction, rally and

decline that continues as the market determines the theoretical fair value of a security. The sum

of these moves forms an unquestionable cyclical pattern consistent within all time frames. 

During a cycle a stock enters different phases of support, from irrational exuberance typically

found before its peak, to periods of widespread discontent where its price is continually

punished. However there are never distinctly good or bad stocks. 

Every "good" stock will eventually become a bad one and vice versa. There are however good

trades; trades that reward an investor who has correctly anticipated a move and positioned

himself accordingly. 

It is important to note that this works with commodities like gold and silver which are trading at

a VERY interesting point in their life cycle. Looking at various time frames in GLD and SLV

you can see this.  (more)