BROKER'S REPORT BELL POTTER- HEMI CONTINUES TO IMPRESS, page-6

I never feel comfortable to a highly anticipated speculation concerning an MRE, a product of not much experience of holding a potential from such early stage without cash flow and highly rated valuation. The problem is these 'back of envelope' even by broker analysis assuming they do not have data sensitive models to derive their assumptions like a mining company who are actually dealing with these type of computer models, is that if market disappoints at the MRE having built up the euphoria we know what will give way.

Yesterday as the CPI was released, I was expecting GP sell off like all asset class which it did reactionary. Price recovered, too out the ST peak then collapsed. Almost a repeat in AUDUSD which is more a surprise but it was the closing day that matters when the market digested the impact of the US CPI figures.

Chart-wise, it was nothing more than just sideway price action in gold and I have given up interpreting gold fundamentals to make any case. Of immediate concern is the inflationary pressures speculated in a post pandemic recover so it seems on the market sentiments of the entire financial system. Under the massive $ stimulus currently where depending who you listen to the financial system cannot afford IR rise without crashing equity markets in general to the cold hard truth from economic numbers, May traditional weak month leading into a X'mas rally further down the track, we can try to look ahead beyond these noises.

However, I am concerned that with such delicate and vulnerable market confidence in a highly valued conditions in all markets, all it takes is a little trigger to get everyone aiming for a small exit door and just SELL! Tech panic selling is on the second round and the Nasdaq index is misleading because we generally think of FAANGS, the next breed is where the FAANGS were at inception with the likes of Teslas' that is sold down.

DEG really needs to hold this handle in the C&H formation or else we are looking at a double top! Given the NFP Friday's release, I was sort of expecting a bit of confirmation on CPI last night but we have a new narrative more, 4.2% annual US inflation! Is this real or just made up?

I am back to I don't know what I don't know.