The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Volatility Index (VIX) which is also known as the FEAR index, pushed up 9% in the US overnight….Feels like we are in for a wild 2024!
2. 40% of the eligible PLATINUM in COMEX vaults just walked out the door….And PLATINUM futures went down overnight. LOL!!….BUY ETPMPT – something big is brewing.
3. China’s economic growth grew by 5.2% last year which was lower than expected. Stocks fell once again on the news….These beaten up Chinese large caps are looking CHEAP. BUY IZZ last sale $32.90
4. SHELL has suspended all shipments via the RED SEA indefinitely.
5. The hits keep coming for South Africa; steel giant Arcelor- Mittal is shutting up shop in the country….SA is quickly turning into a failed state….Hate to say this, but hyperinflation is coming for them.
ASX Market Update
ASX 200 down 30 points to 7384
Evolution (EVN) shares tanked 16% after releasing it’s December quarter production report…. I have no idea how they plan on hitting FY24 production guidance of 789Koz of GOLD when the last two quarters have amounted to output 319Koz which means they need to do 470Koz over the next six months or 235Koz per quarter -impossible….What game are management trying to play with the market?
I am keeping a BUY on EVN only because I’m a massive BULL on GOLD & COPPER. But the board is on some kind of industrial grade LSD after releasing this quarterly. The chances of another capital raising in the future have also increased as it’s balance sheet becomes stretched.
‘Excuse me EVN…PLEASE EXPLAIN‘
Random Observation
Classic!
The Day Ahead
- SPI is down 43 points
- Bitcoin down 1.1% to $42,542
- BHP in US down 2%
- Newmont down 3.17%
- RIO in London down 1.19%
Movements affecting our resource stocks today (USD)
- Gold down 1.2% to $2005
- Paper Silver down 1.66% to $22.66
- Platinum down 1.44% to $891
- Copper down 0.72% to $3.73
- Brent Crude down 0.4% to $77.97
- Iron ore down 2.7% to $125.80
Asian Market Update
Hong Kong smashed 3.7%, China off 2.09% and Japan down 0.4%
Chinese stocks were under pressure yet again with IZZ (Top 50 Chinese companies) falling another 2.44%. On the chart we are at a critical level – double bottom could be on the cards? BUY
Global Market Update
US Market
DOW down 152 points to 37,204 (an hour of trade to go)
Government bonds and stocks were sold off on the back of better than expected retail sales data. As bonds fall the yield rises which is an indication that the market is lowering expectations of aggressive rate cuts by the FED this year.
European Markets
Germans off 0.84%, Brits down 1.48% and Frenchies fell 1.07%
Stocks in the UK rolled over as inflation ticks back up higher which means rate cuts are likely off the agenda….We could be seeing the start of the second wave of inflation.
Key Market Summary
