The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. The market is now pricing in more than a 50% chance that the RBA hikes interest rates in August….Second wave of inflation is going to get particularly nasty for those leveraged up to the eyeballs.
2. There is some insane volatility in the YEN at the moment with volumes increasing 5 fold!….Un-nerving swings in a major currency like this are great for us because it will mean more investors will gravitate towards PRECIOUS METALS.
3. If BHP gets it’s hands on Anglo it will control 10% of the world’s copper supply….BHP has been drifting lower and not keeping pace with the COPPER rally as it will have to pay top dollar to secure Anglo.
4. I think there is a reasonable chance we will see Vlad ban RUSSIAN exports of PALLADIUM to the LME and COMEX…..If this happens the naked shorts will BURN!! BUY ETPMPD and CHN
5. Regulators in the US have seized Republic First Bank….I’m expecting another huge wave of regional bank failures as the commercial property market over there goes from bad to worse.
ASX Market Update
ASX 200 up 61 points to 7637
It was a mixed bag for us with PMGOLD falling 0.6%, ETPMAG off 1.76% and ETPMPD falling 4.97%….but a couple of the miners posted some decent gains : KCN rallied 4.64% (now broken out – next big level is around $2.00), CHN added 7.39% and URNM put on 2.96%; I think another massive leg up is coming for URANIUM – it could easily go on a run like LITHIUM did back in 2022.
Random Observation
Outside of bullion bankers crushing SILVER prices via obscene amounts of NAKED shorting and churning on the COMEX, does anyone have a logical explanation as to why GOLD should trade at a whopping 86 times the price of SILVER yet throughout recorded history it averaged around 11 times? (I’m serious – I really want to hear the bearish view on why SILVER should be treated as trash in the current era).
The Day ahead
- ASX SPI 200 is up 3 points
- Bitcoin down 1.48% to $62,824
- BHP in US was up 0.67%
- Newmont in US down 1.3%
- URNM in US up 2.74%
Movements affecting our resource stocks today (USD)
- Gold down 0.11% to $2343
- Paper Silver down 0.36% to $27.43
- Platinum up 3.84% to $957
- Palladium up 2.37% to $981
- Copper up 2.23% to $4.66
- Brent Crude down 1.09% to $88.52
- Iron ore down 0.4% to $117.45
Asian Market Update
Japan SHUT, Hong Kong added 0.5% and China up 0.79%
All eyes were on the USD/YEN cross. In Asian trade it spiked above 160 before getting slammed back down to around 155. This is a gigantic intra move for a major currency pair. You wouldn’t bat an eyelid if a stock fell from 160 to 155, but mega leverage is used with currencies so it’s different….The sudden hit (sell off in USD, rally in YEN) would indicate a mega buy order from the Bank of Japan.
Global Market Update
US Market
DOW up 147 points to 38,387
Despite reporting an absolutely shocking quarterly, Tesla shares have surged as Elon Musk has been out and about spruiking his self driving tech…..Robots Vs Humans : peaceful co-existence or will we see mass human rebellion in the future?
Tesla shares popped 15% overnight.
European Markets
Germans down 0.24%, Brits up 0.09% and Frenchies fell 0.29%
You don’t often see a government rescuing an IT company swimming in debt….Atos shares have tanked about 90% over the past year.
I would bet the French government is throwing taxpayer money down the toilet. If this TECH was any good, a listed company would be mopping it up.
