A day of consolidation for Li stocks, but we boomed.Yes MLS gained 8 pips to finish on 5.4c. Our volume today was very good, just over 16m shares traded.
So lot of argy-bargy going on around MLS lagging behind. Many "experts" coming around to MLS and other small lithium stocks and comparing to biggest stocks of ASX Li. As I said before, we have to know at what phase we are in our journey. Lot of big Li stocks are much ahead on the curve. What is understood by some is that they too were minnow before they became giants. Its a journey. And we are in early stages of journey. I follow 43 ASX Li stocks very closely - watching every trade of nearly all of them. MLS has great potential. They are still drilling. results have been decent on Li side without being spectacular. But huge potential. Further drilling could discover something great. We are on track to do a JORC in due course, lot of percentages over 1%. But that's just Li. We have Graphite in Canada which has big chance of being economical. Then we have Zinc which also is in the range of becoming a producer. On top of that we have nearly 20m cash, represent 80% of our market cap. There is not a single stock which I follow can boast of that percentage. Today was a day of remembering this potential. We reached 5.4c and closed there. Our first target is to cross 5.8c. That was a figure we toyed before and failed. I have a feeling once we cross 5.8c, we will suddenly be in 7s. Same thing happened which coming down. We dropped from 7s to 5.8 in couple of days. A reverse is being set up. One more big push like today, and we should be in 7s. This is just my thought, so please dyor.
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ASX Li stocks remained flat today. Of the 43 stocks that I track, there was no gain or loss.
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Overnight US Li stocks were in the green. The ETFs of LIT gained around 1.5%. Most of other stocks had gains between 2 to 4%., so we were not able to replicate our US counterparts
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What Next-
Yesterday I had said that US markets may be red, small to medium. Tesla and Netfix had positive impact on the indices and they marched forward. Nasdaq once again over 1% and SP 500 has reached the magical figure of 4000. The Russel though representing small caps declined.
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So although the US indices were in front, the ASX indices were flat. The ASX Li stocks mirrored ASX indices and remained flat.
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Today ASX started in a subdued manner. We have had good gains this week. Today looked to me like a day of consolidation. I still feel today's trading was good. After good gains after a long time, time to take a breather, change of some registry - and not losing. That was crucial - not losing (across the board, though individual stocks did make gains and losses).
.Personally - As I mentioned yesterday, I did sell 30% of my trading stocks yesterday. Today I sold another 10% which made some good gains and switched them to some stocks lagging behind - so my sell percentage is still 30. I have a feeling I will be buying them back early next week, lets see.
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So what is going to happen tonight? Last 5 days of trading has been very good - one of the best 5 days in a long time. Although we are still in the grip of recession/bear/inflation/interest rate etc fears, I could see some of the old trading days coming back. There was decline today but not much fear among punters. That is a very good sign - if we have to go further up, though jury is still out. The US futures are slightly on the negative side - but we have seen that change numerous times till the market opens. Asian markets were mixed - medium greens and medium reds. The volatility index VIX is below 24, at 23.11- which is very good for bulls. As I said yesterday, its a big resistance line. A drop below 23 to early 20s would be very bullish. The cryptos are playing in the same zone, but slightly up. Bitcoin is just above 23k - so in positive territory without a big positive. Some more earnings report, but no major US announcements tonight. SP 500 has a gap in just above 4000 range, many chartists eagerly waiting to see what happens. Many of the US indices are now above 50 day moving averages, which is considered positive by many wanting to get back in. My prediction - I had felt we will have a red day this week, it has not happened across all indices this week. I feel it may happen. It would be good to have a small red. Otherwise I am fearing that suddenly one day we may have a big red. A small red will get a tick on the red and we can move forward. But US punters are on a mission - trying to make up all the big losses of first 6 months. They have still a long way to go. Although probability is not very high, there is a good chance they may continue on their forward march. Will that happen? Lets hope so. Enjoy your weekend after a better week in long time. All the best.
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