Hold your nerves

Hold your nerves everyone.

If you look at the sell orders they are all below buying support.

Stocks are selling off because interest rates are going up. Interest rates are going up because products like commodities are going up. Lithium is one of those. Galan owns that lithium.

Think about it - what sort of retail investors would want to sell below buying support?

Clearly someone wants to amplify the dip here and shake investors with weak hands. Don't be one of them.

Think about it:

• Lithium prices have come off all time highs very slightly because of lockdowns in China. These lockdowns will end soon.
• CRU are the only analyst forecasting a drop in lithium prices and they have got it wrong fairly consistently on public record. Benchmark sees a supply deficit for some time.
• Stocks are down because interest rates are going up. Interest rates are going up because things like commodities are going up, and will continue to go up until we hit a recession. The recession never comes on the first interest rate rises - it usually takes months to years. In times of inflation you invest in commodities.
• This is the best chemistry lithium brine in Argentina.
• Galan has held off dealing on offtake or selling out because they expect higher share and lithium prices.
• Galan's almost at support circa 1.50, and will be over 2.50 before we know it.

That said I'm expecting a nice dip today, and to accumulate even more at bargain prices before it rockets back up.