The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Bond traders are pricing in a 50% chance the RBA hikes next month by 0.25% - it has dropped from 70% the other day.
2. Universal Stores (UNI) has now fallen around 50% this year...Whilst some of these retailers are looking cheap on paper with low PE ratios, they are likely to be value traps.....Retailers costs such as wages and electricity continue to rise while many are being forced into discounting so margins are getting squeezed to buggery....I maintain my AVOID rating on the sector.
3. IMF is stressing that CBDCs should be backed by assets.....It is inevitable that GOLD is going to play a central role in a new financial system.
4. SOLAR boom is powering ahead...China is now constructing a new mega SOLAR PV facility which is way bigger than anything before...The Chinese must be licking their chops with this falling SILVER price.
5. Salesforce CEO sold $100 million worth of stock....takes a brave investor to be buying into some of these stocks when insiders are taking big licks off the table.
ASX Market Update
ASX 200 up 66 points to 7360
Energy stocks, iron ore miners and banks were the major driver behind the market finishing higher. On the negative - Star Group (SGR) hit a fresh all time low as the CEO warned additional state taxes could jeopardize the economic feasibility of its casino in Sydney; I certainly don't like the sound of that so will maintain my AVOID rating on the stock.
I cut the below from Ted Butler's latest report on the Over The Counter (OTC) precious metal derivatives market.
He thinks Bank of America (BoFA) is short 1 Billion ounces of SILVER and 37 million ounces of GOLD.....I doubt even Jesus, Allah or Buddah would be able to help BoFA get out of this mess!!
The Day Ahead
- Our SPI is down 9 points
- Bitcoin up 4.6% to $27,843
Movements affecting our resource stocks today (USD)
- BHP in the US down 1.28%
- Newmont down 1.67%
- Gold down 1.19% to $1947
- Paper Silver down 3.8% to $23.20
- Platinum down 2% to $965
- Copper down 0.22% to $3.88
- Brent Crude down 0.47% to $75.43
- Iron ore down 0.8% to $112.90
Asian Market Update
Japan FLAT, China down 0.47% and Hong Kong fell 1.54%
Delivery of Planes to start from 2030 to 2035.
Indigo now has backlog of 1,000 Planes ✈️ 😳 pic.twitter.com/zbE3eAcZQS
— Vivek Singh (@VivekSi85847001) June 19, 2023
Can someone please check in on AirBus Albo; he has been selflessly flying around the world to meet with the global warming leaders to make sure the weather stays nice and cool for us all - but now millions and millions of Indians look set to spoil his hard work when they too hit the skies like him.
On second thoughts, probably doesn't matter anyway guys...Greta's 5 years is now up - so the end of humanity could be just seconds away! Plan your last supper....
Global Market Update
DOW down 245 points to 34,053
We saw a bit more profit taking again in stocks overnight, accept TESLA which continued it's march higher with another 5% gain.
Brits dipped 0.235%, Germans off 0.55% and Frenchies fell 0.27%
UK grocery prices have hit the lowest level this year with food inflation only running at 16.5%!