And the turmoil continues?.
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Yes SYA lost 4 pips to finish on 4.2 on another high volume day of around 480m shares traded. This was 8th consecutive day of over 200m shares traded. The volatility and turbulence continues.
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Yesterday a big rise in US indices, but led by tech stocks, once again. And risk on and resource sector not doing great, once again. US Li flat. ALB slight red. Set the tone for ASX Li today. That didn't help the cause.
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So what's happening? Very difficult to say. It looks like that there may be some who are privy to something which is not there in the open, and they are happy to exit at any cost. Or there are some who got short squeezed recently, and are now playing with vengeance. We may know more about it, any news or price action will say that.
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Its been a wild play. From 3.8, some 8 trading days back, to 7.2, nearly 90% gain, and then to give all back, with a touch of 4 today. Certainly not for the faint hearted. For those long, one would play out the swing. Others, real question, to be in or out?
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Personally, as I said yesterday, I felt like I was trapped. Coming back from 30s, I had exited nearly every time without any loss. But yesterday caught me unaware. Even today I was in 2 minds, exit or play. There was another stock I was playing recently in big way and writing daily, WC8. 6 weeks back, I first bought at 62, then did some full and partial exits, but never left the stock. My average there was 40. Today I exited at 60 and have written there. It's one of the strongest ASX Li stocks, so I was in 2 minds, I have written the reasons for exit, if anyone interested. So I thought I play the same game. But my conviction is not great as there. Over there it was macro driving it down. Here we think, something to do with recent events of SYA. But I have taken a risk and doing the same play. If sentiment is weak, sell on open, buy on close. On a downturn it works. But will not always do, as stock may suddenly rise. So there is a risk and gut feel in play. Anyway, I did that blindly today, on the back of US Li play. Sold half on open and bought back in close. My average for this phase was 5.3 as I wrote yesterday, today it's just over, still way up from 4.2.
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So what may happen next week? Don't know. I know most will not be able to say with conviction, but luck might work for some. Real chance that those with vengeance might want to see a lower low than 3.7 of now. But today's closing at 4.2 was not at the low like yesterday. It looks like some have stepped up and are ready for the game. If some more step in, we could see a short squeeze. Then previous low of 5.1 will come into picture. And if Li macro improves and there is no more bad news, we could get over that. Will that happen? Let's hope so. Enjoy your weekend and all the best.
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