In the previous week’s newsletter, it was mentioned that the trade war between the US and China would continue. Yesterday, Trump has threatened additional tariff on Chinese goods worth $200 billion and may extend the scope later. Here onwards, global slow down starts. This may continue till June 2019. In this time frame, S&P500 May drop down to 2500.
In our Annual Letter 2019, we asked investors to avoid equities from the first week of May till June 2019.
We asked you to short crude oil at $66/bbl. It has dropped down to $60/bbl. A further downtrend is expected. The month of May is negative for oil.
After the statement of Trump, the US market dropped by 2% from Friday’s closing. We asked our subscribers to short S&P500 @ 2936-2940, DOW @ 26440, NASDAQ @ 7800, RUSSELL @ 1595. Partial profit booking is advised here.
The bottom of precious metals has been made last week. From the current week, it’ll start to move up. Major uptrend will be visible from next week.
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