Ann: General Security Agreement, page-133

@mach8@karmalocust@Hateful8@Bellavena85@123david321@GuardianAngel8@mercsman@ASXO@nzmicro@BrettVadar@bobasteve

champs,

Further to my previous post, update on the futures market below

• Demand and taking deliveries for physical gold still strong
• Manged funds have increased their net longs by circa 3,000 contracts
• Bullion banks/swap traders increased their net shorts by circa 4,500 contracts
• Explains the see-sawing price movements on the POG this week
• Bullion banks/swap traders have got a large amount of naked shorts. They are close to being in the over exposed territory.
• The last time this happened was just prior to the August rally in which they were forced to close out a large position of their shorts
• I don't expect much action this end of the year, so let's see what unfolds over the first few weeks of the new year
• When managed funds are around 130k-150k + net long contracts and rising each week in the futures market, than it's game on, shows that sentiment has changed and they see near short term upside in the market.
• It's extremely positive to be at these price levels, considering the large amount of shorts from the swap traders, lower interest from funds and the physical demand still strong.

Other thoughts

• This week we saw A2M the market darlings get punished for poorer than expected Half Yearly 21 earnings guidance. Where their SP is currently, they have pulled back circa 50% from their highs this year. How is that for volatility! especially for such a large market cap Company.

• Half Yearly reports are a few months away and i expect many others to be in the same boat. Expecting the banks to be severely punished!
• The September 2020 Qtr GDP reports of positive GDP increase (both in AUS & USA) likely contributed to the market general market exuberance and risk-on sentiment. But that was always to be expected with the stimulus, easing of lockdowns, pent up consumer demand frustrations etc
• Further to the above, the constant coverage by all mainstream media boosted sentiment.
• 1 or 2 Qtrs of declining or negative GDP growth can quickly turn things around and we all know media always amplify the negative news, like they have done with COVID.
• Poor half yearly reports from various stocks, particularly those in the ASX 200 + bad Dec 2020 & Mar 2020 GDP data should set up all Risk-Off investments for a major rally.
• Strong earnings from Miners in their Half Year Reports for 2021 could really bring more attention to the sector. We want to see MCM, GOR, NST, SLR, KLA etc all include in their headlines 'Record earnings, Profit increase of 100% YoY, NPAT increase' etc
• Recently GPR managed to raise $140Mil to complete the construction of their processing plant and are well funded to commence operations for their mine in the PNG. Clear sign of what the smart and longer term's money view on the sector and economy is really at.