The Good Morning Report

The latest market news, commentary and strategy by Adrian Rowney 

5 Things that Grabbed my Attention

1. Our SPI is pointing to a 107 point sell off this morning on the ASX 200....Bonds & metals dropped as WESTERN investors pour into the perceived safety of the USD....Doubt we will see any joy for us today. 

2.  Michele Bullocks has her first meeting as RBA chair today...it is expected interest rates will be kept on HOLD, but you never know as she may want to tackle inflation.

3. Insurance premiums for EVs have now surged past petrol cars in the UK....EVs are toxic little suckers so BUYER beware.

4. JP Morgan has moved all its eligible PLATINUM to the registered category which will only partially back the mega SHORT positions on the COMEX....BUY ETPMPT

5.  A Wells Fargo executive jumped out the 14th floor window in the US - he was in charge of RISK....Big banking crisis is coming - will be one for the ages.

ASX Market Update

ASX 200 down 15 points to 7033

It was a fairly quiet session on our market as it was a public holiday in QLD and NSW....We did see ETPMAG fall 4.73% despite SILVER in AUD only showing a fall of 1%....You see it is all about the time frame - when ETPMAG last traded on Friday, $AUD SILVER was around $35.76...by the time ETPMAG opened up on Monday, AUD SILVER was trading around $34.09 or down 4.67%....So don't worry - the price action matches up.....One thing though - on Friday Night there was a whopping 118K futures contracts of SILVER traded on the COMEX or the equivalent of 590 million ounces and 24K options contracts traded for another exposure of 120 million ounces.... The grand total of 710 million ounces works out at around 19 times the amount of registered SILVER available in the COMEX vaults! How is naked shorting of this magnitude even legal?!!? LOL!!

5000 ounces per 1 SILVER FUTURES contract = 590,000,000 ounces traded.

Options over SILVER amounted to 24K contracts, so that's another 120,000,000 ounces.

Yet only 37 million registered ounces backs the COMEX.

Where are the regulators?....Well meet Gary Gensler who has been positioned as the top cop on Wall Street (head of SEC) - he was a former big time BANKER at Goldman Sachs...Manipulation on the PRECIOUS METALS markets has been rampant for years, but their party is soon coming to an end as this is the first time in modern history that physical demand is going to overwhelm available supply....FIREWORKS are coming!!

Random Observation

Chaos in the meat trade

On one hand we have international LIVE CATTLE FUTURES trading at record highs, but on the other, Aussie domestic prices have collapsed. We also see meat prices at the supermarket/ butcher that are sky high but prices at the farmgate have hit rock bottom.

I got a good rundown about this crazy situation on Friday from a very experienced farmer - high feed prices (caused by previous years floods), surging cost of diesel, skills shortages and BOM weather predictions have all contributed into creating this perfect storm....and...lower competition in the abattoir game plus continued inflation is likely to see elevated meat prices for consumers.

As for Australian Agriculture (AAC), I am maintaining my BULLISH view because they sell into the international market (export wagyu to Japan) and the stock is trading at a 50% discount to NTA...The current market value of AAC is now far cheaper than the land value of the company during the height of the drought! BUY last sale $1.32

The Day Ahead

  • Our SPI is down 107 points
  • Bitcoin up 2.63% to $27,805

Movements affecting our resource stocks today (USD)

  • BHP in the US down 2%
  • Newmont down 3.94%
  • Gold down 1.09% to $18.45
  • Paper Silver down 4.78% to $21.35
  • Platinum down 2.5% to $888
  • Copper down 2.5% to $3.64
  • Brent Crude down 1.89% to $90.46

Asian Market Update

China & Hong Kong SHUT, Japan off 0.31%

Chinese markets are closed for the GOLDEN WEEK HOLIDAY.

Global Market Update

US Market

DOW down 74 points to 33,433

This is hilarious - make sure you click on it.

For a bit of background, Matt is referring to this case....

What are the odds that Bob's wife sticks around if he's found guilty?

European Markets

Germans off 0.91%, Brits fell 1.28% and Frenchies dropped 0.94%

EU manufacturing continued it's sharp decline - without cheap and plentiful RUSSIAN energy, the deindustrialization of Europe will be ongoing....Seeing EU sign long-term contracts with the US, for what will be very expensive LNG, is pure insanity.

General Advice Warning
The information provided in this post is general information only. Unless otherwise stated the information is not designed for the purpose of providing personal, financial or investment advice. Any examples are presented for illustration purposes and past performance is not a reliable indicator of future performance. The information provided does not take into account your particular investment objectives, financial situation or investment needs.

Without limiting the generality of the above paragraph no person, persons or organisation should invest monies or take action on the reliance of the material contained in this post, but instead should satisfy themselves independently (whether by expert advice or otherwise) of the appropriateness of any such action. Unless otherwise stated the information presented is not a recommendation to invest in any investments, securities or financial products.

This service, like all other financial services, is subject to market forces and unpredictable events that may adversely affect its future performance. Whilst all care has been taken in compiling information in this post, and is provided in good faith, it is not to be relied upon as a substitute for professional advice. The views expressed are commentary only and the writer accepts no responsibility for the accuracy, completeness or timeliness of the information.

Super Equity Pty Ltd ACN 609 373 202 is a Corporate Authorised Representative 001238425 of ANDIKA Pty Ltd AFSL 297069. It should also be noted that references and hyperlinks to any third party information (including, but not limited to: news articles, blogs, reports, videos or other mediums of information) is not an endorsement of that party or product.

TERRY CONWAY
TERRY CONWAY
July 9, 2024.
I've been receiving Tracy and Adrian's Good Morning Report for about 5 years now. Apart from it being my fav email to read each morning, it's given me good knowledge and tips leading to great investments. This proof in their expertise lead me to put my super with them 3 years ago and I'm pleased I did. Their easy going attitude and values align with me and they are a pleasure to deal with. Thanks Super Equity!
Stephen Hall
Stephen Hall
September 21, 2023.
Tracy & Adrian's knowledge/experience with financial markets, greater global & domestic political/economic impacts & individual companies/stocks is not just unique & refreshing, but also gives great peace of mind. Having a team this capable taking care of your hard earned to help avoid knowable negative impacts, and/or take advantage of opportunities well ahead of time is like nothing I've experienced before. Could not recommend highly enough. Subscribe to Adrian's newsletter too if you want a no B.S. commentary that is unlike the sanitised drivel coming from mainstream financial reporting.
jeff allott
jeff allott
June 22, 2023.
Sound knowledgeable and friendly service with advise tailored to my requirements
Natalie Gaby
Natalie Gaby
January 12, 2023.
I highly recommend Super Equity to anyone needing assistance or guidance with their Super. Tracy was very thorough and clearly explained how Super works and why she made particular recommendations for us. Her (and the team's) customer service is outstanding with being very personalised, and we look forward to a long working relationship with them.
Charlie Gimblett
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
Leigh P
Leigh P
April 29, 2022.
Tracy has been a pleasure to deal with. Found her very approachable and patient. She is very knowledgeable in super funds and I would highly recommend her to anyone who needs more education on how to make their super work for them.
Lena Diez
Lena Diez
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.
Tessa Daal
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!!
Dianne Bentley
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.