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Ed Moya – Weakness Continues To Start The Week, Is It all About China?

Cory
April 25, 2022

Ed Moya, Senior Market Analyst at OANDA joins us to discuss the continued weakness in markets and commodities. With China sticking to it’s zero-Covid policy Ed thinks this is the biggest factor weighing on markets. The issue is there doesn’t seem to be any sector outside of the US Dollar and US bonds (short term) in positive territory. Even the safe assets, especially gold are getting hammered. Commodities broadly are getting hit as well.

 

 

 

Click here to read over Ed’s daily note on the OANDA website.

 

Discussion
19 Comments
    Apr 25, 2022 25:38 AM

    if you bowl…get you heavy balls ready…

    https://tos.mx/5p0q86X

    Apr 25, 2022 25:06 AM

    Where’s EX, away or a welcomed break and nothing serious i trust

      Apr 25, 2022 25:48 AM

      I was on a big hiking excursion to national and state parks in Arizona and Utah for the last 9 days, and this interview with Ed was my first one back in the saddle to kick off the week. I was out of cell and wifi range most days and just figured it would be healthy for the mind and spirit to have a solid break from the glowing computer screen, numbers, charts, news, etc… an information detox of a sort. It felt good to get out in the fresh air and sunshine and just look at fantastic landscapes and have a respite. Cheers!

      Unfortunately, upon my return I realized my resource portfolio had been trounced the end of last week and that is continuing into today. A bit of a bummer to come back to, but I did a bit of horse trading with some positions today, and used a bit of remaining dry powder to do a bit of adding to a few positions into the sell-off.

        Apr 25, 2022 25:35 PM

        Ex:
        Welcome back. Wherever I traveled on the Interweb I kept seeing questions about “where is Excelsior?” Great to see you back and ready to go. Your fans await.

          Apr 25, 2022 25:44 PM

          Haha! Thanks for the kind words Lakedweller2. Yeah, I had a number of private messages over at ceo.ca and via my KER email asking if I was OK. All good though, and it was a great trip. I’m glad to be back at it in the markets after a healthy break, although again, the recent corrective action stings the portfolio in a not so pleasant way.

    Apr 25, 2022 25:53 AM

    This listen wasn’t a pleasant one considering where prices are but on the bright side the June gold contract has regained a position over $1900 and the HUI has recaptured almost 4 points from earlier lows.
    Have to stop going down before we can begin the rebuilding process! JMO

    Apr 25, 2022 25:38 PM

    I’ve been adding on weakness today. I know you shouldn’t try to catch a falling knife, and there could still be another drop to come (after a slight bounce) but I like the analogy being used of this feeling similar to 2018 with the Fed having to reverse course on policy as it becomes clear that tightening policy will cause a horror show in markets.

      Apr 25, 2022 25:03 PM

      Don’t look now but the Dow is up triple digits.

      Apr 25, 2022 25:11 PM

      Good thoughts Aetas Aurea, and yes it was a good day to go looking for value as the sector continued to corrrect in price.

      Lot’s of mining stocks continued to be weak today, following through on the pullback on Thu/Fri of last week. Thete were lots of mining stocks down high single-digits or double digits, making it a good spot to add more to current positions. That doesn’t mean these can’t continue to sell off, but conversely they certainly aren’t pricey at these levels.

    Apr 25, 2022 25:48 PM

    Walked into the candy store today and did some purchasing—–even took an initial position today in impact silver—starting to build a position in CDE.

      Apr 25, 2022 25:06 PM

      Hi Doc. Glad you are in the candy store and nibbling. I added a small tranche to my Impact Silver position today as well, since it had corrected down some to a good accumulation level again.

        Apr 25, 2022 25:15 PM

        Ex, over time I think Impact can move even lower so didn’t take a strong position in it as yet.

          Apr 25, 2022 25:27 PM

          Understood Doc, and I’m happy to add one more tranche to Impact, so drop us a line when you think it is in the best accumulation zone.

            Apr 25, 2022 25:42 PM

            I saw the 10% drop in Impact and was tempted to reenter it…but I decided to add some more to Osisko Metals as they are supposed to come out possibly this week with a resource estimate.

      Apr 25, 2022 25:54 PM

      Doc, keep visiting the candy store, but be sure to stay out of the dentist office. Close to getting some of that candy myself.
      The slow and steady reversal in spx from former interim lows at 4200 may excite some short covering

        Apr 25, 2022 25:04 PM

        Jonsyl, I believe you’re okay with waiting since I believe the way this thing plays out is going to be different then the plunge in March of 2020 for a lot of these stocks. Months ago I mentioned how I felt a lot of these stocks would double bottom with their lows of 2020 and that is currently taking place. Some in fact are taking out their bottom in March of 2020. We may get a plunge the next 2 months but then a bottoming out for weeks instead of a plunge and then a move right back up. All I got to say is we’re getting increasingly a nice bottom for a large number of these stocks and it’s time to take advantage of it—-but no hurry.

      Apr 25, 2022 25:30 PM

      Right on Doc. Any look at the gold chart from March 2020 drop and its stairstep to higher consolidation levels including the most recent from early February vs what should be their beneficiaries, especially the juniors, most at former lows and some below tells the tale.
      Maybe better to pick some of these up as call option alternatives to avoid time erosion, as we may get a grind in here the way you suggest rather than a swift uplift.
      Was thinking of vzla, dsv, cde, ngd, and yes the infamous ipt. Lets hope the dregs stay solvent.
      Also it should be worth a shot with some uranium players, bought some uec Friday, may add with dml and nickel and dimer uex. And the fertilizers, ntr or krn.

    Apr 25, 2022 25:49 PM

    One form of population control: China starves their people to death