Have we seen bottom of this drop?
Yes AZL gained 2 pips to finish on 8.8c. Our volume was decent but smaller that last few weeks, just over 30.4m shares traded. I bought a few today at 8.8c - lets see.
ASX Li stocks had a decent day. Of the 54 stocks that I track, average gain was 3.5%.
Yesterday US Li stocks had a very good day. The ETF of LIT gained around 2%. Other stocks though had much better gains - average around 5%.
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What next -
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Yesterday US indices overall were slightly in red, but most resource stocks I track were well in green. ASX started strongly, shrugging of the slight negativity of US indices and finished over half percent in green. Most stocks I track were the beneficiary and made some gains.
Yesterday I had mentioned that there is a chance US indices will be red - but the best result for us would be if its a slight red. Somehow what I said turned out how it played yesterday with US indices in slight red. And I had said small red may be good, and it was a good day today. Stocks were in the mood to show as if we have seen the bottom of this drop - but the jury is still out.
Last few weeks I have been talking about SP 500 - reason being its a representative of all round stocks and many analysts too follow that. On the weekend and later I said that it is very likely it will fall 1 to 3%. It has fallen around 2.3% by now. So there is not much margin. The best case for all holders is that it returns from this level - a fall of another 20-30 points may be fine, but we don't want to drop below that. Our target - around 4330 - that is close to the 200 moving day average. That is roughly another 5% which SP 500 has to cover. Last Tuesday, SP 500 reached very close, around 4325 and retreated. All the bears were very happy that the rejection happened and hence we saw this fall. If we cross that mark, it is very likely we will be playing 4600 to 4800 - it will be very bullish. lot of fund managers will get in if that happens - so its very critical for a good bull run.
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Personally I was a buyer today and used up all me funds. I had sold some few days back, bought back even the ones I sold and few others. Some I rotated looking at which stocks are looking good for a run, if the run happens, and moved it from weak ones.
So what will happen tonight? US Futures are again in red, but not like yesterday, around 0.2%. Asian markets were mixed, big fall in China/Hong Kong, Japan dropping as well, Korea/Aus made half percent gains. The Volatility index VIX is no longer our friend which I am not happy with. It has shot up to 24.11 now, 20 level looks so far away. Cryptos have moved into a consolidation phase - they are not panicking but not making good gains as well. Bitcoin playing between 23 and 23.5k. Announcements around Housing and Goods - nothing major. All eyes on Powell who will speak on Friday - that may give direction, but there are 2 trading days before that. Expectation is that indices may play sideways till then. So our green today was punters just getting excited or do we think our US mates are going to support us? We haven't had decent green for some time, but at this stage any green will be good. Will that happen? Lets hope so. All the best.
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