AZL Daily Report, page-558

Back to wait state?

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Yes, a strong move of Wednesday, we couldn't get the follow thru to get past 2.1. From a weekly perspective, a slight gain from 1.8 to 1.9. Volume still low to moderate, so probably will need better volume to get to next leg.

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So after Wednesday's play, is it now playing the usual? On Wednesday I had written there is a good chance US markets may do well. And it did. Lot of Li stocks opened with a positive note on Thursday, but China Li stocks went into red. And it doused hopes of a break out. We needed Li macro to be at least neutral, if not positive. That didn't happen. Maybe one of the reasons we didn't get a follow thru. So looks like we are to a wait state - either waiting for Li macro to improve or some news of our own. So some more time now.

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So what may happen next week? Hopefully we get some news, that may give us a leg. But overall Li sentiment is still not good. Its not good for months, maybe years. If I had a choice, I would hope our announcements come slightly later, at least Li macro neutral. But if its very good news, we may see the benefits. Otherwise it may be mundane play till then. Lets hope we get some catalyst soon and get over our first hurdle of 2.1. Enjoy your weekend and all the best.