No direction?.
Yes, from a weekly perspective, a slight drop from 76.5 to 74. Played whole week in 70s with low volume.
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So what is happening here? I feel WR1 has lost direction for short term. Both buyers and sellers not interested at this stage. Why? Volume. The volume this week was lowest for quite sometime, not weeks, or months, could be years. Is that so? Nearly. Last time we had such volume was when we played in mid 120s in early May. Before that it could have been at least 6 months back - low volume. So why this low volume now? I don't think its something very specific to WR1. Overall Li sector is in one of its weakest phase. Large drops have all already happened. Most stocks around or close to their 52 week lows. Sentiment is very poor. No new player wants to join in. Many holding are resigned to their fate. So not much play in volume. And I feel that is what is happening. So unless we get a catalyst, some great news or Li macro changing, I feel we may see this boring/drifting play for sometime.
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So what may happen next week? Li macro is playing cat and mouse. Couple of days back, China Li stocks had a 3% type of rise. It looked good. US Li also rode on Wednesday, liking that play. I also bought a few Li stocks, hoping for a bounce, which I wrote on another thread that day. But as has been the story of Li macro for last year or two - there was no follow thru. Yesterday China Li dropped. Today it dropped it slightly. But instead of staying neutral, it went down last 2 days, opening a situation that US Li may go down again tonight. ALB had made another attempt to get over 100 on Wednesday. Unless we get help from job numbers tonight, it may go back for another play in 90s. Bitcoin is at 54k, has lost nearly 30% from its recent high. Signalling markets may have a correction,, something to keep an eye on, as Bitcoin has always pre-led the markets. I was hopeful and had picked up a few Li stocks on Wednesday, got out today, mostly at break even. It is a very depressing state for Li stocks, in fact, most resource, risk/on stocks, except may be Gold/Silver, or some with their own announcement. So we are back to wait state, hoping for a direction. Hopefully to the upside. Enjoy your weekend and all the best.
(20min delay)