The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. If the Strait of Hormuz gets shut off due to a major WAR Vs IRAN then OIL prices will skyrocket as 30% of the world’s seaborne traded crude OIL goes through there every day.
2. The FUEL ETF on the ASX is probably the safest way to play OIL as it is made up of a portfolio of the world’s largest energy companies such as Exxon, Shell, BP and Chevron….BUY last sale $6.46
3. East coast Americans are stocking up on stuff due to the port strike – shortages can hit really quickly….The only thing that will be moving through these ports are bombs getting sent to Israel (shows how powerful the Jews are).
4. I’m keeping my AVOID on Star Group (SGR) shares even after the latest crash as we still don’t know how big the AUSTRAC money laundering fine is going to be. NTA on the stock is apparently 26c Vs last sale of 28c.
5. The Hang Seng (Hong Kong) soared 6.2% and is now up over 45% since the middle of January. IZZ has been an absolute cracker and put on another 9% yesterday – I’ll now downgrade to a HOLD; probably a good idea to take some off the table and up the ante on CHEAP energy stocks.
ASX Market Update
ASX 200 down 10 points to 8198
Our market was held up by resource stocks which finished in the green once again. I was a little surprised we didn’t see much bigger buying in energy stocks with Woodside (WDS) only putting on 3.1% and Santos (STO) adding 2.4%. I guess fund managers are still thinking this Israel/Iran situation will blow over so it is all a nothing burger – time will tell.
Random Observation
The Strait of Hormuz is probably the most important stretch of water on earth so if it gets blocked then we we will see all sorts of crazy in not only markets but society as well.
I know some of you will say “Oh Adrian, it will never happen because a Wall Street analyst on TV said so”….but… remember, the establishment shutdown the entire world due to a flu with a 99.997 survival rate and made people believe that one of the symptoms was having NO symptoms!…. so cutting off the Strait of Hormuz is definitely not beyond the realm of possibility.
BUY ENERGY STOCKS!!
The Day Ahead
Overnight scoreboard not looking too shabby for us….
- ASX futures up 3 points
- BHP in US was up 0.1%
- Newmont in US down 0.26%
- URNM in US up 1.57%
- Bitcoin down 2.6% to $60,258
Movements affecting our resource stocks today (USD)
- Gold down 0.38% to $2680
- Paper Silver up 1.13% to $32.10 (I’m ready for next leg up)
- Platinum up 1.86% to $1019 (GIFT below mining cost)
- Palladium up 2.58% to $1021 (GIFT trading below cost)
- Copper up 1.59% to $4.66
- Brent Crude up 1.56% to $74.71
- Iron ore up 0.8% to $108.95
Asian Market Update
China SHUT, Hong Kong up 6.2%, Japan off 2.18%
Below is from my morning report on the 18th of January….IZZ is up over 50% since – so it turned out to be a double bottom on the chart!
Global Market Update
US Market
DOW up 39 points to 42,196
US stocks are not at all worried by the mega port strike….
Make up your own mind, but I think it has the potential to be an absolute doozey of a strike which could lead to STAGFLATION…..The union is not just fighting for a big pay rise but are going to WAR Vs Automation on the docks….Man Vs Machine & AI could turn out to be a battle royale.
Watch:
European Markets
Germans off 0.25%, Brits added 0.17% and Frenchies FLAT
Shell only put on 1.74% and BP just 1.4%….I think when Israel strikes back against Iran, these OIL majors are going to surge.
Key Market Summary
