Look, this very space plotted a ‘best’ target for LIT of 42 back in January in an NFTRH+ update. But much like the hysteria that came to accompany the Semiconductor sector after things had gone way past my targets (ref. NFTRH+; LRCX from June 2016), I am getting a little nonplussed by what is going on in Lithium, even though LIT is not yet to the ‘best’ target, which was plotted ahead of time by a rational chart viewer, not a momo-infused fly boy.
I don’t care what the story is; do you see that volume driving the price vertical? It is momentum, it is monkey see monkey do, it is hyper trend following and it is… desperation. It is hedge fund boyz finally catching on a half a year later and pounding this particular play for all it is worth. This will probably not end well for any true believers still buying the Lithium story, which does by the way seem like a good one for the very long-term.
So LACDF was sold yesterday and…
…and SQM was sold for the final time over the summer, way too early. All three items are getting the desperate volume routine.
Lithium is all the rage. It may continue to be all the rage for a while. But how do these things usually end? Bueller? Anyone?
Subscribe to NFTRH Premium for your 40-55 page weekly report, interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow via Twitter @BiiwiiNFTRH, StockTwits, RSS or sign up to receive posts directly by email (right sidebar).