Father of Five : On Gold and Apple
After Gold tumbled the past 2 days, Apple has also come off to below 400.
Interestingly, if you look at the price action the past 6 months, gold and apple stocks have been moving at locked stepped with each other. As Gold was unwound the past 2 days, Apple is now playing catch up. There is absolutely no fundamental or economic reason for apple to follow gold or vice versa, but they are correlated because both point to an unwind of the “crowded” trades. ( a weak relationship could be that Apple has some Gold in the devices that they sell, but personally I feel not strong enough to make a case). . Blue line is Apple stock and Brown line = Gold.
Happy trading, from