The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. HUGE NEWS - CHILE is NATIONALIZING LITHIUM MINES sending shares of Albemarle and SQM tanking in offshore trade...Mexico has already nationalized - Argentina could be next, so everyone in Alkem (AKE) needs to take profits (it's been a massive winner) and move it over to Aussie producers such as PLS,IGO,MIN & CXO.
2. Another 3 million ounces of SILVER was drained from the registered COMEX vaults - only 30 million ounces remain, yet the open interest COMEX futures amounts to 159K contracts which is the equivalent of 795 million ounces (5000 ounces per contract)....LET's GO SILVERSQUEEZE!!!
3. Whitehaven (WHC) ended the quarter with a whopping $2.7bn in cash and management believe the price of THERMAL COAL will be well supported through 2023.....I think the stock is headed back above $10...BUY.
4. According to Business Insider, the USD accounted for 66% of total global reserves in 2003, 55% in 2020 and 47% in 2020....this trend is going to continue. Got GOLD, got SILVER, got PLATINUM???
5. Despite a 37% fall in Bank of Queensland (BOQ) shares over the past 18 months, I still rate the stock and all FINANCIALS as an AVOID.
ASX Market Update
ASX 200 down 31 points to 7330
We ended the week in the RED with banks and large cap resources selling off. But on the positive - two of my favourites being Lynas (LYC) and Whitehaven (WHC) rallied 4.75% and 5.88% respectively after releasing quarterly updates.
Great chart from KATUSA research....Most investors are clueless about the opportunity; I think we are headed for some MAJOR outperformance.....Bring it on!
The Day Ahead
- Our SPI is down 7 points
- Bitcoin down 3.4% to $27,235
Movements affecting our resource stocks today (USD)
- BHP in the US down 3.2%
- Gold down 1.24% to $1994
- Paper Silver down 0.86% to $25.15
- Platinum up 3% to $1141
- Copper down 1% to $3.98
- Brent Crude up 0.8% to $81.75
- $A down 0.75% to 66.92 US cents
Asian Market Update
Iron Ore futures got a bit of a touchup on Friday...In an attempt to push prices lower, Chinese officials mandated an increase in domestic mining of the stuff. Problem is, the local iron ore is of crap quality which ends up creating much higher pollution when making steel. So they'll do it for a bit until the air quality gets unbearable in some of these industrial zones.
— CN Wire (@Sino_Market) April 21, 2023
Global Market Update
DOW up 22 points to 33,808
Market participants are collectively acting like there is not a care in world! The VOLATILITY INDEX (VIX) which is also known as the FEAR index is down a whopping 40% over the past 12 months;
Germans up 0.54%, Brits added 0.15% and Frenchies put on 0.51%
Inflation is out of control in the UK....It was reported that food prices are now up 19.2% over the past year.
Key Market Summary