It appears to me that it could instos that have begun to position themselves out of Gold and Lithium stocks today, shall we say in a hurry (?).
I think they are positioning for US market's likely disappointment for the Fed's rate move in Sept FOMC and a seasonal weak market in Sept-Oct.
If only retailers could be more Ahead of the Curve, they would not have to face this selldown. If you wait for adversity to arrive before doing something, then you'd always be Behind the Curve. As I often said, If It Hasn't Happened, It Does Not Mean It Won't.
Its a no-brainer to sell lithium stocks now, because momentum is gaining to the downside, SC price is stuck in the rut, macro conditions worsening for general economy including China (largest EV market) and the auto industry and more expected wide losses for lithium majors (after losses shown by Ganfeng and Tianqi). Winter hibernation would be with lithium for another 12-18 months.
As for gold stocks, DXY is probably oversold now and Sept rate cut has been all baked in, and with 25bps more likely and the Fed likely less dovish, markets could be brace for a short term dent to Gold's trajectory with dollar recovery. Besides, holding gold stocks hoping for a better correlation with physical Gold hasn't delivered across the board - just look at BGL today.
