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Post-Election Breakouts to Trade: Apple, GLD, SLV, USO, and IWM


The big question is: When will gold and Apple shares bounce?

Over the past two months shares of gold (SPDR Gold Trust (NYSEARCA:GLD)) and Apple (NASDAQ:AAPL) have had a sizable bite taken out of their share price. Active traders along with longer term investors have had a wild ride this fall watching these investments slide to multi-month lows. The big question is: When will gold and Apple shares bounce?

Here we are again with another election behind us and Barack Obama in the White House again. Many think this means four years of the same things: printing, inflation, and higher stock prices.

Is this good or bad for Americans, or the world for that matter? It doesn't much matter since there's nothing anyone can do about it now. So buckle your seatbelt and focus on trading and investing on major trends both within the United States and abroad, using exchange traded funds.

Currently the broad stock market and commodities are in a full-blown bull market, so the focus should be to buy the dips until proven wrong. Below are some charts showing the important breakout levels for Apple, metals, oil, and key indexes like the Russell 2000 (INDEXRUSSELL:RUT).

Be aware that during pullbacks that last more than a month, which is the market has done, some of the biggest drops in price happen just before prices bottom. Scaling into positions is the key to minimal drawdowns.

AAPL Stock Chart

Shares of Apple clearly show the down channel which must be broken before investors start buying again. This stock seems to have big potential for $650 to be reached quickly. If Apple shares rise, so will the overall stock market.

Gold Spot – GLD Exchange Traded Fund

During August and September investors flooded the gold market in anticipation of QE3. Since then gold has been drifting lower with profit taking and because of some slowly strengthening economic numbers in the USA. Gold looks ready for a run to $1800 but may stabilize here for a few weeks first.

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No positions in stocks mentioned.

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