The Good Morning Report – 15th December

5 Things that Grabbed my Attention

1. I'm guessing that the FED has penciled in some rate cuts next year because they see something nasty happening in the financial system.

2. I remember a few years ago we did well out of buying AGED CARE stocks at a big discounts to NTA...Well DGL sort of reminds me of  one of those trades.  BUY last sale $0.81

3. At COP28 Chris Bowen claimed 'the age of fossil fuels will end'....Hey Chris - to make a solar panel you get a lump of COAL and mix it with a high quality lump of quartz then chuck it into a blast furnace which is powered by COAL. 

4. Panoramic (PAN) has called in the receivers as the 50% crash in the price of NICKEL has rendered it's mine uneconomical. IGO was the major shareholder with 13.7%....A few years ago I recommended to BUY 4 NICKEL miners - IGO, Western Areas, Mincor  and PAN. Overall investors have come out well and truly on top even with PAN going bust. IGO has more than doubled, MCR doubled and was taken over by Twiggy and WSA was taken over by IGO at a big premium....PAN will have to be a tax loss - can't win them all.

5. In it's final hour, I still can't believe that PAN didn't even mention the gross manipulation of NICKEL futures. The LME reversed a whopping $12bn worth of trades when NICKEL skyrocketed to $100K - prices subsequently crashed after that time and never looked like making a recovery.

ASX Market Update

ASX 200 up 120 points to 7377

Aussie stocks took off as the FED indicated they planned on pivoting next year to rate cuts. Even our bond market is starting to price in a reasonable chance of a rate cut in March....If we get rate cuts, people will binge on even more debt which will create a much larger problem down the track. There is no way of smoothing all this mess.

Miners and property stocks were the top performers.

Random Observation

You must admit that CLOWN WORLD is becoming very entertaining...

The Day Ahead

• Our SPI is up 43 points
• Bitcoin up 0.4% to $43,031
• BHP in US up 2.3%
• Newmont in US up 3%
• Block Inc in US up 6.25%

Movements affecting our resource stocks today (USD)

• Gold up 0.4% to $2049
• Paper Silver up 1.7% to $24.45
• Platinum up 2.3% to $966
• Copper up 2.28% to $3.87
• Brent Crude up 3% to $76.67
• Iron ore up 0.6% to $134.34

Well, well, well - what do we have here:

Asian Market Update

Japan down 0.73%, Hong Kong up 1%, China down 0.33%

Another wild session for LITHIUM.....it's trading like a crypto these days.

There are rumors circulating that the physical LITHIUM delivered from the Guangzhou Futures Exchange is of inferior quality which would mean EV battery makers /Autos have a deficit of supply to make their products. I don't know what to believe at this stage, but anything is possible. What a show this could turn out to be!!!

⚡Most commodity futures open higher in #China on Thursday morning. #Lithium carbonates jumped 10% but quickly narrowed to 2% after GFEX warned of market risks.
Shanghai #Gold rises 1.5% and #silver rises 2.6% after dovish FOMC signals.
Base metals are up. #Nickel +1.1%,… pic.twitter.com/orr2RmR5jl

— CN Wire (@Sino_Market) December 14, 2023

Global Market Update

US Market

DOW up 158 points to 37,604

Wall Street managed to extend on the previous sessions gains with the market now pricing in a whopping 6 rate cuts next year and more for 2025 and 2026.....Behind the scenes something very big has broken.