WR1 General Discussion, page-32917

Playing with weakness.

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Yes WR1 dropped from 52 to 46 this week on usual volume.

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So what is happening? As I wrote last week, the rise to early 60s looked like a false start, so was expecting WR1 to play the macro. It seems to be doing that. There was an announcement around scoping study, but currently Li macro is so strong that individual stocks are not able to hold to any announcement, unless it's ground breaking, or takeover etc. None of that happened, so its playing accordingly, with weakness.

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Li macro is still weak. Ganfeng is playing its own game, of weakness. US Li stocks are doing better, but as I wrote in the weekend report, unless Ganfeng comes to the party, there may not be a party. Why is Ganfeng diverging? Is it more representative of weakness in the sector, or some conspiracy theory to keep it low so that sector doesn't recover. We don't know. So we have to wait and see.

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So what may happen next week? Unless Li macro improves, it's difficult to see a confirmed reversal. Otherwise all we get is bounces which lose it's effect soon. But general markets are doing well. US Li stocks still fine. ALB has held its level, still over 20% from its lows, but Ganfeng is within 2% of its low. Best scenario is US Li stocks continue to do well and Ganfeng catches up. Let's hope it plays out that way. Enjoy your weekend and all the best.