LYC 1.45% $6.80 lynas rare earths limited

How to read the market

  1. 1,247 Posts.
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    These are my opinions and thoughts. These are not facts and should not be viewed as an investment advice.

    The market is treating Lynas and any distressed companies as a speculative stock.
    Big players and investors will trade these stocks on a daily basis. They pour money in,only when the market in an upward trend and they sell off these stocks heavily on red days or down trend.

    The market is very controlled with different soft wares and programmes.
    When the big players factor in good news on the DOW, they pour money into these speculative stocks, hence, green Lynas, in most of the times, mean Green Dow.

    When they factor in bad news, these speculative stocks get sold heavily with large percentage of loss as opposed to blue chip stocks. Heavily sold Lynas means red Dow that night.

    Stock with an impending news might lag behind and not necessarily follow the usual pattern.

    Let's take an example of Paladin:
    It was sold off heavily because of the impending sale of a stake in one of their mine to the chinese. It went down to 28c, despite the oil price was up on geopolitical tension. As soon as the news out, it started to follow the usual pattern.

    Oil price is under $100 and despite paladin is a uranium producer, it follows the gains in the energy stocks. It also follows the change in uranium prices. It has also been consolidating around 35c because it is awaiting the Japanese public review about starting of their nuclear reactors.
    Within the next week, we will hear about the public review. This kind of stock will fly after a period of consolidation.

    The smart thing to do is to jump during consolidation period and then buy big prior to the news.

    Today, Lynas has substantial gains and that is an indication that the DOW will be in the green.
    Last night The DOW went from 74 points to close at 16.05 points. Because the DOW index is within a range, that retrace was to allow for big gains tonight. The retail sales figures will be announced on Wednesday, so IMO, expects two green days. When I see this scenario, I buy big and sell after two days if I am trading the stock on a daily basis.

    When I mentioned low share price, I meant the ability to buy more volume of shares. Totally different from what has been suggested by others. I was not talking about the volume of the trades. I was talking about the volume you can obtain because of the low share price.

    Of course I know Telsa's motor, S-model, is rare earth free. I was referring to the advance in the technology and as some analysts were saying, that Telsa;s motor is rare earth free, however it is expensive and there will be competition between electric cares with rare earth and telsa. Such competition is healthy for rare earth. You will still have cars with rare earth motors,Prius,Nissan,Leaf,Chevrolet Volt.

    There is so much to write and I will give examples every day for the next week to cover the market.

    My opinions and thoughts.
 
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Last
$6.80
Change
-0.100(1.45%)
Mkt cap ! $6.356B
Open High Low Value Volume
$6.78 $6.80 $6.69 $13.60M 2.014M

Buyers (Bids)

No. Vol. Price($)
3 13933 $6.78
 

Sellers (Offers)

Price($) Vol. No.
$6.80 1389 3
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Last trade - 16.10pm 23/08/2024 (20 minute delay) ?
LYC (ASX) Chart
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