Oh blimey I've never thought of that. An SPM opening a hedge on future pricings. A pretty smart insurance policy when you think of it and can be adjusted (portionally close out) according to how the spod price moves.
So until this LIT chart reverses to the positive it's fair to say that associated stocks are all going to suffer with a high short / hedge component. I've always known this as it's the same as any downtrending sector but I've never considered that it's the industry itself placing the hedges against futures.
Hey can you teach me about the 3rd friday in trading months regarding contract expiries? Many thanks.
Most know I despise monthly charts, but it's worth noting the incoming squeeze. Now the results from that could still be months away (goh blimey) but worth taking noting of IMO. (please don't tell anyone I posted a monthly)
To me the current macros point towards LIT stocks like this still offering trades in the short term but for real investment, it's still a ways off.
Cheers
LTR Price at posting:
60.5¢ Sentiment: None Disclosure: Not Held
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