Friday the 13th saw red slash its way through the markets today. Many will point to Chinese economy numbers, but really traders are just unwilling to hold positions into the weekend. We have a slew of banks reporting next week. While JPMorgan (JPM) and Wells Fargo (WFC) both beat earnings today, both stocks suffered large losses regardless.
The Chinese economy grew at 8.1% in Q1 of 2012. Only 8.1%… What we need to realize from that number is that the majority is from actual consumer growth. And a smaller percent is now from finance. If that trajectory can sustain than the Chinese consumer can keep their growth target and any slip in the economy can be made up by the Chinese government intervention financially.
Gold slipped some more down $12.30 to $1,667.20 an ounce. Again the Fibonacci floor level for Gold should reside in-between 1620 and 1680. Many believe it to be 1660… just might be 1666. In a few weeks we might see the technical pattern form out creating the new floor. (it’s about a four week process to create the floor – recent moves in Gold have been so sudden we haven’t had four weeks of flat sideways movement to find the median between highs and lows over the length of given time to create that key level being the floor of the price of Gold)
Keep the shopping list handy across next week. Don’t be surprised to see the 50 day moving averages tested again. When they do thats you’re green light.