A good rise, now a pause, something not right?.From a weekly...

A good rise, now a pause, something not right?

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From a weekly perspective WR1 moved from 57.5 to 59.5. Volume more than average.

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So what is happening? Turbulent times. Volatility has increased considerably. Greed and fear alternating. Punters confused. US Li stocks had a reasonable increase. Most stocks around 40 % above their lows, and they have kept the gain they made recently. ASX Li stocks doing the same. Chinese Li stocks were lagging previously. So they did 3 consecutive 10% increase days. Caught up to others. After that they had to hold like US Li. But they are not playing the game. Lost 10% yesterday. Another 6 to 8% today. So not a good sign. I have always said that for sustained increases, we need all stocks to go in tandem. As I have been writing, we cannot have a party, without Chinese Li stocks. They can lag for short periods, but then have to catch up. But they are playing truant again. Not completely given up the gain, but looking very vulnerable. So now we have question mark on the rally. Next few days may give more direction, but a caution sign has been given.

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WR1 is too playing the macro. Positive is that it has held to most of the gains. Negative is it again failed to cross 64 level. This was the 3rd time. Macro didn't help. So still doing all right for now, but may need macr help now.

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Personally I did not like the Chinese play. I play pattern, trading pattern, number etc, so something was not looking right. So I have let go half of my WR1 shares at average 61.5. My buy was 49, roughly 25% gain, not much, but was managing risk as I didn't like some signs. Will be happy to buy back soon, even higher, if signs are good. My play is different from most, I can get my play wrong, I try to manage my risk reward, so please dyor.

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So what may happen next week? A lot depends on tonight. Till now, from bottom, the play has been that US Li stocks have taken lead, went ahead, and kept the gain. Chinese Li stocks have then caught up. Last week ALB was pushed down whole week, but it held 94. Then bang on Friday it moved to 102. Again this week, it has been pushed down, but again it has held 102, even when Chinese stocks dropped 10% yesterday. We need another bang, tonight maybe, and get to 110+, more importantly above my key number of 106. Chinese stocks can catch up next week. Will that happen? Let's hope so. Enjoy your weekend and all the best.