Holding the level..Yes LRS trading in a very narrow range, tried...

Holding the level.

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Yes LRS trading in a very narrow range, tried to hold the play around 20 level. It worked this week. From a weekly perspective, small drop from 20 to 19.5.

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So what is happening? As I have been writing last several weeks and months, most Li stocks are playing the macro. And the macro is still weak. No confirmation of any bottoming or reversal. All we are getting are some bounces, which lose its affect soon.

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US Li stocks still doing all right, many above 20%from its lows. And they are holding it. But Ganfeng is playing very weak. Every week doing new lows. Still within 2% from its lows. So there is a divergence. Why? Is Ganfeng more representative of the the sector weakness or a conspiracy theory to keep it low so that sector doesn't recover. We don't know But as I wrote in the weekend report, unless Ganfeng comes to the party, there may not be a party. So we wait. At least general markets are doing very well. SP 500 made new all time high this week.

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So what may happen next week? Chances are more of the same. Best scenario is US Li stocks continue to do well, and Ganfeng catches up at some stage.

Lets hope it plays out that way. Enjoy your weekend and all the best.