Originally posted by catz987
Short sellers expect falling prices in the future, but they buy back when the expectation reverses.
And here is my story -
1. Recently, I read a chart about the growth rate of China car sales over the past year or so. It shows that the growth rate has declined since April, entered negative growth rate in Sept or so, and then stabilize in the past 2 months or so (while still in negative growth territory.
2. It's safe to assume that most cars are EV or something like that in China these days. So that'll directly affect Lithium price wouldn't it ? .... meaning cheaper Li price caused by declining EV sales growth rate (to negative growth) since April, performance of which probably matching share price performance of the Li stocks like GXY, again from around April.
3. An income tax cut is coming soon and perhaps more EV will be sold next year .... which may revive Li stocks like GXY.
