Weekly Review Li Stocks - 6th Jan 2023Here is the weekly review...

Weekly Review Li Stocks - 6th Jan 2023

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. I have both ASX and US stocks in two separate figures.

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Please note that all my analysis are from a trading perspective looking at short-term view.
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Diary - There is no Diary again this week, sorry. I had to do a lot of chopping, moving etc. I am very nimble and volatile, hence anything I hold could be temporary, hence that is not much point. This week I bought a lot of Li stocks. I just want to see another week of stability before posting, hence I am not writing it. I am very hopeful it will be there next week.
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For this New Year of 2023, I have added 19 new Li stocks. So my list now contains 73 Lithium stocks. Hopefully everyone's favourites are there. These are:
- 1MC
- A11
- AM7
- AOU
- BNZ
- CY5
- EMH
- GMN
- L1M
- LEL
- LPM
- LRD
- OCN
- PAT
- PMT
- PR1
- PSC
- RGL
- SGQ
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.How did we start 2023 - General Markets:

• For those to read my posts, I have been calling for a bounce for few weeks now. This is for us to take us to SP 500 to at least 4000/4030.
• On Thursday, markets were not happy. Before Friday I was writing that probability is positive. On Friday I wrote, that probability has decreased, but its still 50/50. I am happy to write that probability after Friday's trading has increased considerably. There is now 80% chance that we will hit the numbers I have been talking for last few weeks.
• Market sentiment was weak till Thursday. After Friday's trading, I can see a very strong shift towards the positive - sentiment is good at this stage
• Most analysts and charts that I follow are looking very bullish for short term
• On Friday we got relatively weak numbers on Jobs - Unemployment at 3.5 (expected 3.7), Non-Form Payroll at 223 (expected 200). But average wage growth decreased. So what happened on Friday? There was heavy shorting after release of Job data on Friday. Markets opened lower. Then ISM PMI data came which was below 50. Markets rallied. All those shorting got caught on the wrong foot. There was a chance that market may have been in green, but not so heavily - represent short squeezing that may have happened
• We still have to remember that we are still in same zone of 3800/3900 - Couple of days back we finished at 3852 (same number as Dec 16). We finished 3808 next day (down 44 points). On Friday at 3895 (43 points above 3852). So one would think, what is different? Its SENTIMENT - its changed slightly positive
• Lots of analysts were bearish before Friday. They themselves were shorting. Many got wrong-footed and admit now that they got it wrong. Just shows markets are very volatile and even seasoned players are not getting right in short-term. So there is no certainity of anything, more probabilities. Depending on individual's appetite, best to play with caution but with positive short-term.
• Caution - Many analysts and chart patterns are still bearish for medium term - so its best to play the game rather being fixed in an opinion

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What will happen next week - General Markets:

• Friday's trading has given a big hope that SP 500 may test 4000/4030 next week - the critical numbers I have been calling
• There is crucial Inflation data on Thursday - there is at least a 50% chance that we may reach that before Thursday. Else, Thursday numbers will make or break the rally
• We should be in positive territory for most of next week - Then CPI data on Thursday will then decide the course
• The markets are happiest I feel in last 5-6 weeks or so - next week there is a good possibility to bring a smile on a lot of faces (Caution - those trading should consider that a binary event on Thursday could change direction significantly - hence play risk accordingly)

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.Personally: I have been saying for quite sometime that I am playing for a bounce. I was around 50% cash last week. I am around 30% cash as of Friday. I bought a lot earlier in the week, and at one stage was only 15% cash. Sold couple of big holdings on Thursday (1 Oil stock) and Friday (1 Canadian Li stock). Also reduced a bit on Friday on some runners to reduce risk - but still quite heavy compared to last week. I think I was lucky on my buys, not only that Oil and Li stock, but others, as not only stocks I bought are already 10-20% up, but its looking good for first half of next week. My plan - I will see how we are going, there is a chance that if we get a good rise and if my buys are around 30% up, I may reduce a bit by Thursday - but at this stage I have an open mind and will play 1 day at a time - will write more in Daily reports.
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Stock specific Info:

• ESS crossed and finished above 34c on Friday. This is a very positive move. It gives a lot of credence that we may have seen the bottom around 30c
• If things go well we should be touching 40c this week
• Key number is to cross 40 this week
• I have a feeling that if everything goes well, we may have a 4 in front of us by next week, or very close to it (subject to CPI data)
• My plan at this stage is to buy ESS this week. Not sure of day. If it gaps up on Monday more than I like, then will wait for back check on retreat and then buy, otherwise on open.

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Here is the Figures for the Week:
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Figures for US Li stocks:
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