The Good Morning Report – 21st December

The latest market news, commentary and strategy by Adrian Rowney 

Today's Report proudly sponsored by:

 

5 Things that Grabbed my Attention

1. Ocean freight shipping spot rates have now spiked 20% since the situation in the RED SEA flared up....Malaysia just banned Israeli cargo ships from the Straits of Malacca...Global supply chains are now getting very messy which means huge disruptions and wild price swings.

2. There are some whispers that RIO Tinto (TIO) may takeover Pilbara (PLS)....The funds that are short PLS would get absolutely crushed. Hard to believe that 21% of the shares on issue in PLS are sold short!

3. The physically backed ZKB SILVER ETF increased by 6.5 million ounces in a day....If WESTERN investors start cottoning on about how cheap SILVER is - then look out!! BUY ETPMAG

4. Rex Minerals (RXM) has signed a letter of intent with Japan's Nittesu Mining with the aim of kickstarting RXM's Hillside Copper project in South OZ...Large copper projects with all the approvals are as rare as hens teeth these days. I rate RXM as a SPEC BUY last sale $0.20.

5. Tracy @ SuperEquity has had a great call on Block Inc (SQ2) - it's been one of the best large cap performers in our market of late.

ASX Market Update

ASX 200 up 48 points to 7537

Our market charged higher again as another strong lead from Wall Street gave investors even more confidence. GOLD miners were the best performing group putting on just over 2% despite the AUD GOLD price only increasing by a smidgen. NEM added 1.67%, GDX put on 2.3%  and RRL increased 2.38%. 

Random Observation

Look at the table below which shows just how tiny the investable SILVER market is - just US$31.2bn worth!....People don't properly realize that investors will one day be fighting like cats and dogs to secure a piece of the action. I don't know when the fireworks starts but that dude (if it's one or could be a fund??) who bought 6.5 million ounces is now sitting in the absolute box seat.

The Day Ahead

My dad got his letter published in the Australian today. He is spot on...

  • Our SPI is down 55 points
  • Bitcoin up 3% to $43,482
  • BHP in US down 1.76%
  • Newmont in US down 1.56%
  • Block Inc in US down 1.5%

Movements affecting our resource stocks today (USD)

  • Gold down 0.35% to $2045
  • Paper Silver up 0.45% to $24.43
  • Platinum FLAT @ $965
  • Copper down 0.33% to $3.88
  • Brent Crude FLAT @ $79.21
  • Iron ore up 1.3% to $134

Asian Market Update

Japan up 1.37%, Hong Kong up 0.68% and China fell 1%

I'm calling it - I think the Alibaba share price has seen its lows. It hard to reconcile that this TECH beast which rakes in billions in free cash flow and continues to grow has performed this poorly on the market.

Alibaba announced it is now getting into the Funds Management business - I think they'll clean up.

When Alibaba stages a major turnaround, so will the ASIAN TECH TIGERS ETF - BUY last sale $7.58 

Global Market Update

US Market

DOW down 475 points to 37082

US stocks finally took a little breather as profit takers moved in.

One thing I find interesting is the divergence between large caps in the US and China - the divergence has really opened up...

In BLUE is the DOW which is the top 30. In GREEN is China's 50 largest.

European Markets

Germans FLAT, Brits up 1% and Frenchies added 0.12%

There was a bit of celebration by economists with UK inflation slowing down to a lower than expected 3.9% in November....But the harsh reality for the working poor is prices are even higher than the huge spike experienced last year, therefore the economic situation is even more dire for most.

Key Market Summary

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Stephen Hall
Stephen Hall
September 21, 2023.
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June 22, 2023.
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Natalie Gaby
January 12, 2023.
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Charlie Gimblett
August 8, 2022.
A huge thanks To Tracy And Adrian from Super Equity for sharing their knowledge on the recent Introduction To The Stock market Course I attended. The course was fabulous and gave a great insight on how the world operates from Share Markets, to Economic Cycles, World Currencies and great tips on how to look for opportunities on how and where to invest based on local news and world events along with overseas markets and indicators. Also thanks again Adrian for the Silver coin for 1st prize as part of the demo share market game we played over the duration of the course. Would thoroughly recommend the Stock Market course as well Tracy and Adrian's knowledge on our own investments. Cheers Charlie
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Leigh P
April 29, 2022.
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February 25, 2022.
My husband and I have had the privilege of receiving the guidance, services and support from Tracy for over 5 years. Having joined Super Equity has been one of the best financial decisions we have made to date. Tracy's extensive experience and knowledge has guided and helped us improve in our financial journey. No question is to silly, Tracy is always available for any query you have and gives us the time to explain our portfolio and investments. Receiving the daily morning reports has been helpful to understand and learn the market. We have always highly recommended and will not hesitate to recommend Tracy and team for any and all financial guidance. Thank you Tracy and look forward to your continual support.
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Tessa Daal
October 13, 2016.
Tracy has been an amazing teacher. I have gone from having no idea about what my super was doing and feeling really overwhelmed by the thought of all that it involved, to now being in control and understanding. Through super equity's I have a transparent, easy to understand managed fund. Tracy has even put me into contact with advisors specialised in life insurance and income protection. I cannot thank Tracy enough for empowering me and helping me organise all my affairs. If you need someone patient an knowledgeable to organise your super and investment portfolio, Tracy is the best!!
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Dianne Bentley
July 8, 2016.
The service and support received from Super Equity has reached and surpassed all our expectations. Having previous experience with stock brokering firms over an 11 year period has highlighted to me how superior the service and support received from Tracy Askew at Super Equity is. For myself and for my clients. Tracy's in depth fundamental and technical knowledge in all areas of the market reduces many hours of my time in the research needed to be successful and profitable for myself and my clients.