Li sector in yo-yo mode, with weakness?Yes SYA lost 2 pips to...

Li sector in yo-yo mode, with weakness?

Yes SYA lost 2 pips to finish at 4 on a good volume of just over 143m shares traded. Today's trading mirrored what happened around most ASX Li stocks - weakness and some red. For us, it was another wild swing, especially compared with yesterday. Gave away some good gains from yesterday. One solace is that after doing up and down, we are 4 from 3.9 couple of days back - very small so not much to read. The other positive was the finish, I feel it finished strongly compared to sell off which happened earlier in the day. This was the second time it reached 3.7 - has held it till now, giving hope of double bottom, but in a very uncertain and precarious position. Lets hope that is it.

Yesterday US Li stocks did not do well. So there was a high chance ASX Li would have been down today, and it played accordingly. The Li stocks are in slight yo-yo mode, with green and red alternating, but with weakness. Today again a lot of ASX Li stocks either made 52 week low or were within 5/10% of its lows. At this stage there is no clear direction. So its still in the state to play with caution. The stocks were down today, but the margin was not much - that was the only solace from today's trading. We still wait for Li macro/sentiment to change. Signs of bottoming/reversal may be in play, but they are not yet confirmed, still very much in the danger zone.

Personally no trades for me today. But I did play some other Li stocks. After seeing what happened overnight, could feel a weak day coming. So sold some on open but bought back later in the day, slightly reducing averages - not much, but under the circumstances anything lower may come in handy later..
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So what may happen tomorrow? ALB again dropped around $3 to be in 120s. Last 10 trading days it has been playing around average 120 - going up and down, touching both lower and upper level of 112 and 127, but not embracing either. It is clear though that ASX Li is following US Li. Yesterday we were good green, but not US Li. We followed US Li today to get in red. So we will need US Li to do well for us to do well. Its delicately poised and anything can happen. As long as ALB does not make a dash towards 112, and manages to stay here, if not in green, we may get a balanced or green day tomorrow. Will that happen? Lets hope so. All the best.