CXO - Chart Thread, page-214

I don't think we're in for a market crash. I just think a few cages were rattled for institutional investors and they took some chips off the table to shore themselves up and that sent some shockwaves through the market on what was otherwise an excellent start to the day out the gate.

Most likely, I attribute the drop on Friday due to some news articles going around about certain parts of the bluechip ASX being overvalued and most importantly, a substantial amount of scare that existed amongst institutional investors who would have been watching the Gamestop/ Robin Hood fiasco unravel and Law Makers on social media talking about major law changes etc which would have spooked the market in the US (and therefore around the world) that new regulations would be on their way etc under Biden.

Personally, I'm not holding my breath that Biden will do anything too radical to address the dodgy activity that happened here but no doubt there will be a few sacrificial goats wheeled out in front of the Securities Exchange Commission in the coming months and maybe we might see some tightening of rules around what happened.

From what I've read (if my info is correct), the shorts expired on Saturday so I expect that a few people who jumped on the bandwagon will probably be left holding the bag, along with Melvin Capital taking some heavy losses. But for everyone else, I suspect things will begin returning to normal this week and lithium is likely to have a good one as it was expected to.

It's just a shame Tesla wasn't a little more forthcoming about their expected profits in the coming quarter as that was obviously what the market was waiting on to put some more fuel on the fire. I personally think they will knock it out of the park but are deliberately going with the under-promising/over-delivering strategy because COVID could potentially (but not so much as likely now that a vaccine is being rolled out) throw some kind of spanner in the works.

There's my 2 cents anyway.