ESS Weekly Report, page-61

Weekly Review Li Stocks - 3rd Jun 2022

Here is the weekly review figures and charts that I do every week. It is useful only for those interested in trading or those who hold multiple shares and based on performance would like to keep re-balancing as we go. I do hold a number of Li stocks and like to trade. This is the reason I include a number of Li Stocks in my analysis.

Please note:
This is no reflection of all AU Li stocks as I have only included those that I am interested. In my list are shares that I hold, held before or planning to buy in near future. Since this is my list, I may have missed some good stocks. The averages are simple averages and not weighted averages. So the average don't reflect AU Li average. This is just for my tracking and analysis.

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This week I have not added any new stocks to my list. So my list has 43 Lithium stocks (12 stocks were added last week).
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Please note that all my analysis are from a trading perspective looking at short-term view.
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This week there is no Diary. I am adjusting my portfolio due to two reasons - first and mainly around end of finance year and secondly volatility that is happening in the markets. So having a lot of changes in my portfolio - one planned (EOFY) and second unplanned (volatility). As this is specific to my situation, I thought I will hold on sharing that for now. Hopefully back soon.
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Something to keep in mind this week:

• Stocks are in constant decline after reaching new highs in April
• After dropping for 3 weeks, then a gain of 11%, then last week lost 2% and again this week 3%. So 2 weekly declines now.
• The average decline was around 5% but averages got skewed because one stock gained very high
• Many stocks have lost 40-50% from their recent highs. Its also true for US stocks. Many stocks have to rise around 50% from here to recent highs
• For the year now, average gain is 37%
• Last week I said "Any special event/incident/catalyst can completely change the trading pattern - something to keep in mind" - And it happened this week. The GS Report etc caused huge declines
• Markets are still volatile. Individual risk appetite and expectation should drive trading.
• We already had to deal with recession/inflation fears, now we have GS type of reports as well to deal with
• There are some signs of decoupling from general market, but in steep decline I feel it won't hold - it may be good for small general market declines
• Friday US markets were down, so we might start Monday soft, but hopefully pick up by end of day, and then gain by end of week
  

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Something Positive:

• Although we had slight decline this week, a large negative news has been partially absorbed
• If the general market improves, there is a good chance the GS type of report may be completely overlooked - based on industry reaction
• US markets declined for 3 of the 4 days of trading last week, probability is for a better next week - if the recovery is to continue
• End of Financial Year is coming - stocks behave differently. People sell for tax reasons, but Li has mostly gained, but people may still sell to make capital gains and offset other losses - so some days bargain picking can happen
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Here is the Figures for the Week:
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