ESS Daily Report, page-51

Happy New Year to every one. Although it was a disappointing year, especially second half, at least we finished the last day on a positive note with hope of good times to come. There is a chance we may still have some turbulence in the Q1 of 2023, but odds are very good that we will do our final bottom and then rise much higher during the year. For long termers who have already bought, time to sit back and let the last phase play out. For those with coins, we are near June bottom in many stocks. There is a chance it may do a double bottom at these levels, so good to time to add. For those wanting to trade, there still maybe some swings in play, both direction. I wish you all a very prosperous new year, especially in the share market. Just my thoughts, anything can happen, so please dyor.

Did Santa finally come to town?

Yes ESS gained 2.5c to finish at 32.5c. Our volume was on lower side, just over 884k shares traded. Although volume was still low, but a good trading day - getting away from 30c and looking to cross 34c and move to next zone.

ASX Li stocks were in very good mode, positive sentiment all around. Of the 54 stocks that I track, there was average gain of around 5%.

Overnight US Li stocks did take part in the rally - average gain was around 2%, we did much better. After being thrashed, Testa made a gain of over 8% yesterday, on the back of another green day prior. That certainly helped the Li sector sentiment.

What next:
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Yesterday US markets finally made a run in positive direction, SP 500 gaining around 1.75% and finishing on 3849. ASX too was in green, but just 0.25%, late selling towards the close wiped out some gains - punters still jittery.
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I have been calling for a bounce last few days, but bears were not in a mood to give anything. Even yesterday when things were not looking good, I wrote that I still have hope that a bounce is in play. Thankfully it did. Santa too had his problems, the rope broke down, he felt he needed extra strength so stopped to down red bulls. But finally he made it. On the last day of the year. When Santa comes, he has a big task which cannot be done in a day, so there is a chance he will stick around and give all the goodies next week.
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SP 500 is at a good level. The numbers I have been talking about last few days, 3900, 4000 and 4030. That is if we move in positive direction. Downside, critical level 3750.
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Lead indicators are looking good. Yesterday all 3, the Yield, Dollar Index and Volatility Index VIX fell. So all the indicators are pointing towards further gains to be made.
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At this stage the shorting in US markets is at the highest level ever. Many may lose a lot of money if markets go up from here. So those punters will try their best to push it down. But the market Makers (people who run DOW business), they will have to pay out. So its in their interest that markets don't tank. There is a real scenario that if markets go up more, there may be a big short squeeze which can take us to the 4000/4030 level. .
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Personally I have added some from last few days as I feel there is a chance of a bounce - so adding to any long position and looking for swing trading as well. Markets are still volatile though, anything can happen, so please dyor.
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So what will happen tonight? A short trading day tonight. We finished in green today. US punters who have been slogged may also want to finish with a smile - and finish with a bang on another big green.. Will that happen? Lets hope so. Enjoy your weekend and New Year. All the best.