LIT ETF is getting smashed mainly because of:Negative trade war...

LIT ETF is getting smashed mainly because of:

1. Negative trade war sentiment - Donald Trump was this close before he caved to the nutters in his party (or himself?) who really don't want a deal with China. As such, stocks globally sold off as the prediction of a resolution to the trade war now looks further off, if at all. You never know, next month's G20 may change the outlook again but this is getting ridiculous. Reality is that this won't turn around until Donald Trump's voter base for his re-election campaign look like they're hurting, or China caves.
2. Albemarle is going through a downgrade - their bearish language around developing an integrated operation at Wodgina and their recent not-so-great quarterly are weighing on the market's view of ALB
3. Tesla getting smashed over and over (long way down from $420 now) - uncertainty about sales of the Model 3, delays to Semi, Roadster and Model Y. Expect to see changing sentiment if Shanghai Gigafactory gets built and preliminary production occurs in 2019 - and/or any other typical Tesla wildcard.

Note that ALB and Tesla are significant parts of the LIT ETF so falls in those stocks is amplified in the LIT ETF falls.

So what does all this mean for GXY?
Until broader market sentiment improves, spod pricing improves or is clearly stabilising with upwards pricing signals, or GXY-specific news (e.g. SdV development or T/O rumors, sustained demonstrated profitability from Mt.Cattlin, A40 or LPD news), we are likely to be in a holding pattern.

On absence of news, expect mostly stable share price with potentially some fall depending on how bad the macro environment or Lithium news gets but I would be surprised to see it dip below $1.45 (current mid-term low) without a significant shock.

The reality is current GXY share price has a very small value attached to either Sal de Vida or Mt.Cattlin (take you pick which you want to price in besides the hefty cash balance) - big risk premium if some event forces this to be repriced - would see us back to $2+ very quickly.

And one final pro tip - watch the short% to get a feel for which way the big boys will take this next.