So what's happening to MEI?.
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I know some posters don't like my posts, but shutting down my posts has not stopped MEI to reach 8.8 from 31. But it gives comfort to some, so I understand.
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So MEI after reaching 8.8 is now trying to show the volatility we have been seeing for over 1 year. It used to love doing that in early 20s play. Suddenly one day, big line wipes, and one would think we are going to the moon. Then next day line wipes down. I am seeing that again in the play now 10 (+/-). So although a recovery from 8.8 to 10 may look good, it also touched 10.5, I feel its not yet convincing, just based on previous patterns. The reason being 20/25% swings in a day is not unusual for MEI. So it has to go above that range first, so in this case I feel around 12 at least. Then one would think 10 may hold. .
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I still feel its not MEI fault we are at this level. As I wrote yesterday on many threads, Ravgnome does a daily wrap of stocks every evening on day thread. Yesterday 6 stocks did 52 week high. 89 stocks did 52 week low. So it's bad across the board..
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Also in my reports I have shown how REE is travelling in last 5 weeks. So its more market related, sector related. My gut feel is, unless the overall Li/REE sector trend changes, we may see more pain before any gain. Based on what is happening in last few weeks, there are no signs of reversal yet. Thankfully, general markets, like SP 500, dropped 10%. It was looking very dire for 20% drop, but some job numbers saved it. We also need general markets to behave for any recovery in the sector. Hopefully SP 500 may have bottomed, no confirmation yet though.
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Anyone interested in knowing more about my thoughts and numbers, please look at my other posts. I wish 10 holds here, that will be a good start of recovery. But if it doesn't, its very difficult to predict the bottom, especially if general markets are also tanking. I wish holders well. All the best.
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