Silver investment: Buffett’s clearance of airline stocks hits the market! Watch out for black Monday! Silver prices may be hit!

After two straight days of losses, silver prices continued to come under pressure in Asian trading on Monday, trading around $14.88, below the main moving average.

Statistics from real-time data update site world meters show that as of 11:32 Beijing time on May 4, there were more than 3.56 million confirmed cases and more than 248,000 deaths worldwide, including more than 1.18 million confirmed cases and more than 68,000 deaths in the United States.

Hopes of an economic restart have boosted risk sentiment recently as countries begin to ease their blockade, but U.S. President Donald trump’s renewed threat of tariffs last week added to market uncertainty.

Tensions have risen between the us and China as both economies have been hit by the pandemic and containment measures.

US President Donald Trump said Friday that raising tariffs on China is “certainly one of the options” as he considers how to retaliate against China over the spread of novel coronavirus, Reuters reported. Mr Trump had made a similar statement the day before. As a result, the us stock market fell sharply on Friday.

“Given the current economic and financial uncertainty, trump’s china-bashing is the last thing the market needs,” said David Carter, chief investment officer at Lenox Wealth Advisors.

The stock market cliche of “selling stocks in May and never looking back” still holds on the first trading day of May, as fears mounted as some us states began to loosen restrictions imposed during the outbreak.

“The market was very strong in April because they ignored the trough of the weak economy and focused on the fact that the stimulus will reignite growth,” Carter said. But the trough may be longer and deeper than many people expect.”

Chris Weston, head of research at Melbourne brokerage Pepperstone, said: “the risk of a pullback has increased this week. The us is not the only country that has publicly targeted China, whether it’s trump, kudlow or Pompeo, it’s been mentioned a little more frequently and traders are selling the renminbi.”

“Trump is running for re-election,” said Jim McCafferty, co-head of Asia Pacific equity research at Nomura, who sees the move as reminiscent of then-president Ronald Reagan’s “trashing Japan” policy in the 1980s.

“We’ve seen this before, and I think as governments around the world become more focused on domestic issues, it makes sense to let other countries take the blame,” he said.

That’s a challenge for yield-seeking investors, including, for now, billionaire warren Buffett. Mr Buffett’s Berkshire Hathaway posted a loss of almost $50bn in the first quarter.

Buffett revealed at Berkshire Hathaway’s annual shareholder meeting Monday that Hathaway has liquidated all of its airline holdings (American, delta, southwest and united) due to the outbreak, CNBC reported.

“We made this decision at the airline business level,” buffett said. “we basically pulled money out of these companies when we were losing a lot of money.

Buffett’s decision to sell all of the airline stocks so decisively and calmly, based on his professional judgment, does not affect his optimism about the U.S. economy, which he believes will eventually win. “We have survived the Cuban missile crisis, the 9/11 attacks, the financial tsunami, and nothing can stop the United States, even in the face of very serious circumstances, the United States will prevail.”

Technical analysis:

The dollar


On the daily chart, the dollar index continued to rebound above the 99 level and is trying to break through the key 50-day moving average resistance. On the technical side, the MACD green momentum column is weak, the RSI index is hovering around 50, and the KDJ random index is further down towards the oversold level, with room for a rebound.

On the 4-hour chart, the dollar index has staged a strong rally and is now approaching the 20-point moving average resistance. MACD red kinetic energy column appears, KDJ random index to rise through the 50 level, or further higher.

silver


On the daily chart, silver is still trading in a tight range, trading below the 20-day daily average, missing the key $15 mark. MACD red kinetic energy column close to disappear, KDJ random index hovering around 50, short or continue to oscillate.
On the 4-hour chart, the silver price has fallen sharply after hitting a high of $15.50 before, reaching a low of around 16.62 at one point, and is now between the 50 and 200 moving averages. The MACD green momentum column is expanding slightly, while the KDJ random index is hovering below 50, and the trend may continue to trade in a narrow range.

fundamentals Positive factors :

  1. Statistics from real-time information and data update website world meters show that as of 10:29 Beijing time on May 4, more than 3.56 million cases had been confirmed globally, with more than 248,000 deaths, including more than 1.18 million cases in the United States and more than 68,000 deaths.
  2. In an interview with the Wall Street Journal, st. Louis federal reserve bank President James Bullard said he is concerned about the potential for a recession if the shutdown lasts too long and the problems of restarting the economy are not handled well.
  3. U.S. President Donald Trump said on Friday that he was considering retaliatory measures against China for its response to the novel coronavirus outbreak and that raising tariffs on Chinese imports “is certainly an option.”
  4. The institute for supply management said its index of U.S. manufacturing activity fell to an 11-year low in April as a new coronavirus outbreak wrested havoc on supply chains, hinting at a deeper recession.

Fundamental negative factors:

  1. The Korean central news agency said Saturday that Kim jong UN, chairman of the workers’ party and the state council of the Democratic People’s Republic of Korea (DPRK), attended the completion ceremony of a fertilizer plant north of the capital, Pyongyang, in the first report of his public activities since April 11.
  2. British ministers will begin talks on a trade deal with the United States in the coming week, the Sun reported Friday, as the government ordered formal talks to begin despite a novel coronavirus outbreak.
  1. Preliminary results from a trial of a coronavirus drug showed that at least 50 percent of patients who received five – and 10-day doses of the antiviral drug redeliver improved, and more than half were discharged within two weeks, Gilead sciences said.

Leave a Reply

Your email address will not be published. Required fields are marked *