MLS Chart, page-259

Is the boom time coming - or its already there?

Yes MLS gained 13 pip to finish on 7.4c. Our volume was very good, just under 17m shares traded. I bought 3 lots today at 6.6, 6.8 and 7c. And I was buying on the top today, the first buy to touch 7 was mine. So finally we are in 7s. We all know how undervalued we are - as I said before - water finds its own level. And the minimum for our level is double digits - I know most of us are eyeing the previous high close to 20c in short term - if markets behave.

ASX Li stocks also did very well. Of the 43 stocks that I track, average gain was 8.5%. Couple of days back we gained 9.5%, so solid gains. Also as I have repeated before, this is the turn of small to medium stocks to make good gains as they come from behind. Large stocks were the frontrunners. Most of my money is in small to mid now and it paid off - many made gains of over 20% today.

Overnight US Li stocks also had a very good day. The ETF of LIT gained around 2.5%, other stocks also gained - average around 4 to 6%.

What next -

Yesterday I had mentioned that many indicators are pointing towards red. But the CPI figures came in at 8.5, below previous month of 9.1, and below expectation of 8.7. So what happened? Indices went ballistic, stocks were mixed - some sector did very well others just decent.

So I have been talking about 2 indicators for more than weeks now - harping about it every day. SP 500 to be over 4200 and Volatility index VIX to be below 20. Surprise, Surprise - yesterday both the indicators were met. But I have also said that these 2 have to cross and keep staying above. So the first part is done - going above. Second part will be tested in next few days - hopefully the indicators are in right direction.
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Personally, yesterday I had felt that I had taken a bit of risk. I had bought heavily yesterday when stocks were weak - used up 50% of my funds in one go. Many were from sell couple of days back when my short-term targets for many stocks were met. But the risk paid off. Today in the morning I bought in heavily again around another 40% of my funds - and the way market went today, I am already decent up from todays, yesterday's buy much better. So I am 95% invested (50% long from before and 45% trading stocks). 5% cash i keep mostly always, for sudden buys. My indicators have been met, waiting to see they maintain it. My strategy in this phase of market is to hold. So although I have a trading mind, but in this phase I overcome all temptations and just keep holding - till the point we get a feel that it may stabilise/consolidate. But all my Li stocks, even trading ones, I will continue to hold now - so not much trading till I see a direction change. Second change in my strategy in this phase is to buy - even on top. Eg yesterday when market was weak, I was waiting for dips. Today in morning in my buys, I was buying the top, stocks can run away so no point waiting for dip.

So what will happen tonight? US Futures are in green. Asian markets were largely green except for Japan, not sure if it was closed. Volatility index VIX is below 20 - at 19.72. Cryptos are flying. Bitcoin from below 23k yesterday is over 24.5k now. PPI figures tonight which will happen before market opens - that is the only thing I am worried about - it can put a halt in the bullish run if numbers are not good. But hopefully its fine. So will we continue our march tonight and maintain the indicators? Lets hope so. All the best.