Hello traders everywhere. China's economic growth sank to its lowest level in almost 30 years as the trade war with Washington deepened a slump that is weighing on the global economy. Growth in the world's second-largest economy slipped to 6% in the three months ending in September, down from the previous quarter's 6.2%, data showed Friday. It was the weakest level since China started reporting data by quarters in 1993.
Last week President Trump agreed to delay a tariff hike on Chinese goods and said Beijing promised to buy up to $50 billion of American farm goods. That announcement brought about an initial burst of enthusiasm, but that soon faded after Beijing failed to confirm the scale of possible purchases, and officials said the two sides still were working out details. The slowdown and weakening consumer demand add to headaches for Chinese leaders as they fight a 15-month-old tariff war with the U.S. that has sapped China's exports.
Stocks traded lower Friday but remained on track to post solid weekly gains after the release of better-than-expected earnings. The Dow traded 100 points lower, while the S&P 500 pulled back -0.32% and the Nasdaq shed -0.8%. The DOW was up +0.5% for the week heading into afternoon trading. The S&P 500 and NASDAQ were up +.80% and +.79%, respectively, for the week. The major indexes will end the week within striking distance of their record highs.
Bitcoin continues to trade below its 200-day MA with the 50-day moving in to form a death cross possibly. It will post a weekly loss of -4.9% inching closer to our key level to watch of 7,714.70. A move below that level will trigger a red monthly Trade Triangle signaling a long-term downtrend.
The U.S. Dollar will lose roughly -.9% on the week triggering a new red weekly Trade Triangle indicating that a sidelines position is in order. Gold will post a modest gain of roughly +.10% for the week. On the flip side, crude oil will post a weekly loss of -1.5%.
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 2,855.94
- Dow (INDEX:DJI): 25,743.46
- NASDAQ (NASDAQ:COMP): 7,700.00
- U.S. Dollar (ICE:DX): 99.66
- Gold (NYMEX:GC.Q19): 1,497.90
- Crude Oil (NYMEX:CL.N19): 52.76
- Bitcoin (BITCOIN:BITSTAMPUSD): 7,714.70
Every Success,
Jeremy Lutz
INO.com and MarketClub.com
We also should keep in mind that the Fed is also feeding an uncontrolled weakening of US dollar, printing money without due economic support.
Trade wars using tariffs has always harmed all parties involved. Even a psychotic like trump would know that if he could read and wasn’t emotionally stuck at age 12. Unfortunately, with the Chinese economy faltering and U.S. manufacturing hitting new low levels, the rest of the world will also be suffering toward depression.
First we have to understand that politicians are pawns. In the US, the controllers are the federal reserve and the military industrial complex. The banks are funding themselves through the Fed. The military industrial complex must have continuing wars. China is manipulating the US. We don't know their plans and believe whatever numbers they put out, just as we do the economic numbers put by our government. Meanwhile, the US consumer (backbone of the economy) is clueless, spending most of his/her time on sports and entertainment. No solution on the horizon.