Monday, April 16, 2012

Strong Follow Through in the Sell-off

We've now had a strong week of selling last week, and if the market is going to continue higher, then we're seeing some important macro price levels that need to be held this week.

Euro/USD - 1.30
Gold - 1600
Sp500 - 1350

Saw China's gdp figures come in 8.1% lower than the expected 8.4% and some rising yields in the Euro sector - which may be negative headlines for this week.  
I still fail to see a hard catalyst on a decisive move lower - we may see a fake breakdown on Monday or Tuesday and if we have a strong price recovery by Wednesday - will be a good time to get set on some of the beta stocks that have retraced their recent runs.  

I will probably be looking to establish a position in Goldman Sachs again as it looks to dip towards 110.
AIG has looked strong since the offloading of the Fed's position in the equities, and housing stocks may be looking prime for an entry given it's pullback from recent strengths.