Weekly Review Li Stocks - 28th Oct 2022Here is the weekly review...

Weekly Review Li Stocks - 28th Oct 2022

Here is the weekly review figures and charts that I do every week. It is useful only for those interested in trading or those who hold multiple shares and based on performance would like to keep re-balancing as we go. I do hold a number of Li stocks and like to trade. This is the reason I include a number of Li Stocks in my analysis.

Please note:
This is no reflection of all AU Li stocks as I have only included those that I am interested. In my list are shares that I hold, held before or planning to buy in near future. Since this is my list, I may have missed some good stocks. The averages are simple averages and not weighted averages. So the average don't reflect AU Li average. This is just for my tracking and analysis. I have both ASX and US stocks in two separate figures.

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Please note that all my analysis are from a trading perspective looking at short-term view.
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I have also included my Diary - predictions, my holdings, my plans for the week.Caution around Diary - This is just my opinion/plan. Probability wise one person can be wrong many times, even all the time, so please use information accordingly. So for those who like leisurely reading, enjoy.
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My last weeks report, luckily most things have come as I expected, including risk/reward etc. I can be lucky with my calls, so please use information accordingly.
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Overall for this week - I did say something where I felt we could be. Most importantly crossing SP 500 level of 3900. May not mean much to some, but an important level. I have been calling out that number nearly every day last few weeks - we did reach that on Friday, was I lucky with my call?. Its a big number. Now 4100/4150 is in sight, maybe with hiccups, but well within range,
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..Friday's Action:

• On Friday US we had another big rise, similar to last Friday
• I have been saying that in US Friday nights are big - either big red or big green - but mostly reds in last 2 months
• I mentioned on my Friday report that we could have a big green, possibly - my call was lucky and we got one
• We had a big rise on Friday - SP 500 closing at 3901, after reaching 3905
• This is very significant
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Risk-Reward from here ( this is still relevant and hence copied from my last weekly report):

• I have been following the price action very closely, in my figures, rise from June bottom etc.
• After Friday's action I feel we have got final confirmation that Risk-Reward from here is very good
• There is a chance we can have another sell down next week on indices - we could reach lower low (below 3491 on SP 500) or higher low.
• At this stage, punters, markets have factored in all bad news, most feel we are near bottom, if not we have seen bottom.
• If indices were fall, even big, stocks that I follow would drop another 10 to 20% - most likely another 10%.
• But if what I am reading and seeing in price action is that we are near bottom or seen bottom, and its time to rally, we are looking at gains between 40% to 100% in next few months - individual stocks will carve their own path though where they fall
• So at this stage of market - Risk-Reward is very good,

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Next week SP 500 path:

• A big week coming with rate rise decision and FOMC comments
• Last week I said - First level is 3800. This is very crucial to get over it. It has been our recent high and for a bull run we need to get over this. . We crossed it this week.
• then I said - Next is 3900/3915 - a big number when we were coming down, Also represent 50 day moving average - so can lot of action there. Again, we crossed this this week on Friday, barely, we still need confirmation if its good
• Then I said - Next is 4100/415 - this is final confirmation of bull run. Also is a number at 200 day moving average. If we can overcome this, the sky is blue. But there will be a lot of fight here - it won't be easy, it was not easy before when we retreated from this level and a strong resistance zone. Good thing? If we reach 4100/4125 - we are already 10% on indices, there is a good chance stocks would be up be by average 30% - We can decide then - Well, its really a fight which is on, I feel its achievable
• Next week if we retreat, 3720 is crucial - if we fall below that, then rethink whether we are in uptrend
• Next week - Very high chance we will make an attempt at 4100/4200 - whether we succeed to overcome, I don't know. I will be very surprised if we don't reach around 4100 level next week. I think we will make an attempt

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Personally (from last week, I feel sentiment has only improved towards positive side):

• As I have outlined above, I feel this is good time to take risk
• I have decided to take a punt on the long.
• Currently I have 50% of my portfolio as long and 50% I trade. Earlier in the year I used to be 65% long and 35% trade. I am going back to that. I feel its time to add more to long positions based on risk reward
• Next week we may see fluctuations based on earnings report, but I will wait for Powell to speak before I change my tact, which is after 1 week.

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Stock specific Info:

• MLS is stuck at around 4
• It needs a catalyst, for sure, its stuck with its BOD who have very bad track record

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Here is the Figures for the Week:

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Figures for US Li stocks:
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Rise from June Bottom:
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My Diary -.Is it good?
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