U.S. President Donald Trump signed a nearly $500 billon COVID-19 relief bill into law to expand loans for small businesses reeling from the outbreak, as his Treasury secretary promised surveillance to stop bigger companies from accessing the funds. This is a positive signal for the U.S. stock market! The federal government should consider helping the airline sector by buying four to five years worth of airline tickets said Donald Trump. Low Federal Reserve interest rates will provide additional support to the stock market.
Trading recommendation: Buy 2845 and take profit 2900.
We are expecting a bearish rally in the new five-day period. Baker Hughes data showed oil rigs down to 378 this week from 438 last week, down 13.7%. Oil rigs are down by a total 305 since the week ended March 13, when there were 638 rigs. That constitutes a drop of more than 47.8%. Continental Resources, the largest oil producer in North Dakota, stopped all drilling and shut in most of its wells in the state's Bakken shale field. Russia kept its oil output unchanged through last week. State officials say production has already dropped by about 300,000 bpd.
Trading recommendation: Buy 16.00 and take profit 17.88
The European Central Bank stepped up its purchases of eurozone government bonds after the summit on Friday, using its Pandemic Emergency Purchase Program to keep speculation on a eurozone breakup capped. This is a positive signal for the precious metals market. Additional support for gold is provided by the soft monetary policy of the Federal Reserve. Low interest rates in the United States and Europe are forcing investors to increase their long positions in the precious metals market.
Trading recommendation: Buy 1714 and take profit 1738