Ann: Multiple High-Grade Lithium Intersections from Manindi, page-294

Are we walking again?

Yes, MLS remained flat today to finish on 7.5c. Our volume was lower than yesterday, around 8.3m shares traded.

ASX Li stocks had a decent day. Of the 42 stocks I track, average gain was 3.5%.

Overnight US stocks did well. DOW was down by over half percent in the initial trading, but Li stocks were surging. It was a good indicator of the decoupling. We need more of that as DOW has been unpredictable and weak for last couple of months - though its behaving well since last week.

The sellers were still there today but big sellers are slowly decreasing. It was good to get rid of some of the big sellers wanting to exit without losing anything today. Eg there was a seller who has been trying to sell 300k shares for last few days. It was moving its sell from mid 8s to 8.3, then 7.9. It finally got rid of its agony by selling at 7.5c in closing auction. Just shows that we are now getting even hesitant sellers out. When the recovery comes, journey will be much smoother. Question on every one's mind is - when will that happen? If we have a big Li day on Monday (subject to Us markets behaving tonight), then we could start on Monday. Else another few days. But I will be surprised if we are not much higher from here by next Friday - lets see,

What next - As I said yesterday, the probability was for a green, and luckily we got that. Tracking the last 3 days around how stocks have generally behaved - a big fall, a small fall, a small gain. I was expecting this small gain today and had mentioned in my report yesterday. But today's gain reflected stocks walking again. In this phase of initial walk, many stocks were still hesitant, not totally convinced. If the cycle of 4 days is to be completed, next we should be running. This is where we may see big gains for stocks across the board. This is the behaviour we used to see of Li stocks over couple of months back. DOW had a big gain yesterday. Probability is for a flat night. But DOW has to give a message, that the recovery which started over a week back, with slight correction, is still continuing. It may surprise us again with a good green. Lets hope so. All the best.