The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. In this weeks picture the BEAR is standing on Uranium (u308) or colloquially known as YELLOW CAKE; a mega shortage of this stuff is going to hit in the next few years. URNM is my preferred play.
2. Lending by Chinese banks has perked right up. I wouldn't be surprised to start seeing some very strong economic data coming through.
3. On the COMEX there is currently 135K OPEN INTEREST FUTURES CONTRACTS over SILVER or the equivalent of 675 million ounces of SILVER....while there is just 32 million ounces of REGISTERED SILVER in the COMEX vaults.....The short position in SILVER is off the charts and is the only reason why we get to BUY SILVER on the CHEAP.
4. The Julcani SILVER mine in PERU was forced to shut after protesters broke in a destroyed some of its facilities....SILVER supply from PERU is going to be way down this year....The CLOCK is ticking on the giant SILVER COMEX SHORTS - we just have to be PATIENT!
5. CHINA announced it bought another 15 tons of GOLD in January....Do you honestly think the Xi Man is going to be wrong??
ASX Market Update
ASX 200 up 26 points to 7530
Boral (BLD) was the top performer with an 11% gain after posting results and an outlook that the market liked. With a decent rally over the past few months I am downgrading BLD to a HOLD from a BUY as its valuation is getting up there - we are now looking at a forward PE of well over 20 times earnings, plus management are not paying a dividend this half.
It's a solid company but rather expensive at the moment.
Another RED FLAG???
I learn something new everyday - I actually had no idea the savings rates through the 70's and early 80's was that high, which would indicate that many Americans must have breezed through those nasty economic conditions back then....With the savings rate now plunging, the situation is looking very grim for the current generation.
The Day Ahead
Results from AGL, MGR, ARF,CLW & MP1
- Our SPI is down 25 points
- Bitcoin down 1.38% to $22,856
Movements affecting our resource stocks today (USD)
- BHP in the US was FLAT
- Gold up 0.25% to $1889
- Paper Silver up 0.92% to $22.38
- Copper down up 0.72% to $4.05
- Brent Crude up 1.68% to $85.10
- Iron ore up 0.5% to $121.55
Asian Market Update
China down 0.49%, Hong Kong FLAT, Japan down 0.29%
Hong Kong is CHINA now - nothing major happens without Xi Man's backing.
Hong Kong leader John Lee is trying to persuade oil giant Saudi Aramco to list in the financial hub https://t.co/ZsTcqMfF9c
— Bloomberg (@business) February 7, 2023
China is Aramco's largest customer so I would expect this monster deal will get done....OIL trades are also likely to be done in YUAN, thus bypassing the USD.
This deal will also highlight a weakening of Wall Street and Washington on the GLOBAL stage.
Global Market Update
DOW down 207 points to 33,949
Alphabet (Google parent) fell around 7% on fears that Microsoft's new AI search engine will see it take market share. They have programmed the AI to be ultra woke so the results and info spat back can be absurd. I guess it is all part of the ongoing brainwashing.
Brits up 0.26%, Germans added 0.6%, Frenchies dipped 0.18%
BP shares hit a 52 week high as it rallied a second day post its record breaking profit of $27bn for 2022. This is the most money BP has made since it cleared $26bn in 2006....The UK oil giant plans on increasing it's share buyback and will also pump money into renewables (which perversely requires an obscene amount of hydrocarbons to make in the first place - we have ourselves a CLOWN WORLD of TRUELY EPIC PROPORTIONS!)
Key Market Summary