The Good Morning Report – 24th November

5 Things that Grabbed my Attention

1. LITHIUM has now plunged 78% from its high....It is going to take massive government intervention to turn the ship around. Demand for EVs is just not there - people have worked out they fail on both the environmental front and economic....Mass adoption only happens if ICE cars get completely banned.

2. Giant Chinese shadow bank Zhongzhi Enterprise Group is insolvent with a black hole of $36bn...Xi Man will likely send the execs to the gulags for this.

3. Nick Scali (NCK) CEO -Anthony Scali just sold about 40% of his holding @ $11.00 and will pocket around $50mil....Fundamentally the stock looks cheap with a good dividend yield and a low PE - but I'm concerned about a slowdown in retail spending....Well done to Anthony - he floated the company @ $1 in 2004 when it had just 10 stores and grew it to over 100 today. What a legend wheeler and dealer!

4. Turkey's central bank increased rates by 5% to 40%...It's financial system is broken - those that invested in GOLD were protected.

5. There are reports of a "Mystery Pneumonia" spreading like wildfire throughout China with kids being the hardest hit....Now I can't confirm whether it is true or not, but it's worth keeping an eye on.

ASX Market Update

ASX 200 down 44 points to 7049

Our market failed to follow Wall Street higher as miners closed mostly in the red thanks to slightly weaker commodity prices. Star Group (SGR) was one of the worst falling 4.76% to close at a fresh all time low of 50c.

This is SGR's miserable looking chart over the past 12 months. Sort of reminds me of the typical price action of a companies back in the GFC....Fortunately I had an AVOID on SGR over the last couple of years. I'm still waiting to see the size of the government fines to be imposed before reviewing my recommendation.

Random Observation

At the moment the market doesn't care one little iota....but one day it will.

U.S. Bank Losses on held-to-maturity assets have soared to an ALL-TIME HIGH of $400 Billion! 👀 pic.twitter.com/Vobur5BHhD

— Barchart (@Barchart) November 22, 2023

The Day Ahead

• Our SPI is up 14 points
• Bitcoin down 0.57% to $37,280

Movements affecting our resource stocks today (USD)

• BHP in the US - SHUT
• Newmont  - SHUT
• Gold FLAT @ $1993
• Paper Silver up 0.3% to $23.76
• Platinum down 1% to $922
• Copper up 0.24% to $3.77
• Brent Crude down 0.83% to $81.28
• Iron ore down 1.2% to $133.22

Asian Market Update

Japan up 0.29%, Hang Seng up 1%, China up 0.6%

Are the below tweets just propaganda??....We do know that Bill Gates and the WHO are chomping at the bit for another pandemic and they've all promised another one is coming. Time will tell if this is it.

#BREAKING Hospitals in China 'overwhelmed with sick children' after unidentified pneumonia outbreak.
pic.twitter.com/UDl4c87ofz

— News This Second (@NewsThisSecond) November 22, 2023

Has it spread to Vietnam??

⚠️🚨#BREAKING🚨⚠️ The respiratory department at Vietnam's children's hospital (HCMC) has run out of beds, forcing patients to lie in hammocks in the hallway. It looks like the undiagnosed pneumonia outbreak in China has found its way to Vietnam.

🇻🇳 PREVIOUSLY ➡️ UNDIAGNOSED… pic.twitter.com/p4LP1EvWnf

— TinAlerts (@TinAlerts) November 22, 2023

Global Market Update

US Market

DOW shut for Thanksgiving. 

European Markets

Germans up 0.23%, Brits added 0.19% and Frenchies put on 0.24%

The German government has been forced to suspend it's constitutional "debt brake" again....This gives them the ability to spend like drunken sailors - the pullback in inflation will be temporary.