As long as Lithium is used in EV and other progressive technologies, it is a growth material (Captain Obvious). In the US Lithium gets to have it both ways, as a dirty miner and as a clean energy solution with hints that the Biden admin may be beneficial.
With the sad note that I allowed myself to be shaken out of ALB (sad face emoji), here are the Lithium producer/prospects that I own.
SQM is an established chemicals/materials company ticking a new recovery high today. This was added back on October 15th per the NFTRH trade log and has been tracked in NFTRH reports since. I have no current plans to sell, given the long-term prospects of Lithium. As of this moment it’s tacked on 31%.
PLL is a more Lithium concentrated developer based in Australia and focusing on a project in North Carolina. I bought it on November 11 due to the massive bull flag. In that short span it’s added 25%.
Finally, LAC, a former successful trade highlighted in NFTRH back in 2017, was added on Friday despite its somewhat sloppier chart. It’s up 11% in basically one trading day.
But the performance of these and any equity holdings to date is something that can disappear in a nanosecond. Personally, I don’t trust this market as far as I can throw it, let alone trust it to be stable. 2020’s news cycle has been a real pain in the ass. But with Lithium I like two things:
Thing 1: the long-term prospects for this material and
Thing 2: as to the two more speculative items above, their charts could have a long way to go if those were indeed big bull flag consolidations. The 50 day averages are important in both cases. I don’t know what made them first rocket upward in late September and then harshly correct those moves. I only know that they did and for a Lithium bull, a buying opportunity was created.
Anyway, I have not really been jumping into the market and increasing risk. I have been rebalancing from remote work enabling Tech (which, along with gold stocks, did the heavy lifting previously) to the more reflation-sensitive stuff. The vaccine news has only helped that cyclical stuff. It’s not hype either. We now have rough timelines on when the worst of this nightmare will be over and the inflation/reflation born of all that funny munny sloshing around the world will take over. Within that scope I like the idea of being strategic, with a global view.
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