1Mon·

Trade: Lithium Americas

$LAC (+5.51%) Yesterday, it closed the massive upward gap from September and is now more oversold on the daily chart than it has been in two years (RSI 22). I expect a rebound here soon. That would also make sense, since the sector as a whole has recently been heavily sold off. I’ve bought 1,000 shares. The trade is tightly hedged. If the price sustainably falls below the 4.50 CAD range, I’ll sell them off again.

14 Comments

Sebbster@Sebbster

1Mon

Thanks for the idea :) It's really cool that you're posting about the purchase first, rather than the sale (at a profit).

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Christoph@ChrisBizz

1Mon

I find it striking that MP Materials (in which the U.S. government also took a stake last year) is still far from closing this gap. Is this a sign of relative weakness on the part of $LAC?

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jkb92@jkb92

1Mon

@ChrisBizz I could imagine that the situation at $MP will (for now) remain a runaway gap because the government's stake has so fundamentally changed the situation from the market's perspective that the stock price won't return to that level.

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jkb92@jkb92

1Mon

@ChrisBizz Oh, wait—I just noticed that the government also has a stake in $LAC, right? Hmm, we'll see.

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Chris@Multibagger

1Mon

@ChrisBizz $MP It also produces rare earth elements other than lithium.

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Sebbster@Sebbster

1Mon

What are your thoughts on lithium $SLI?

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jkb92@jkb92

1Mon

@Sebbster All of my stocks in the rare earths sector have been performing pretty poorly lately. I could imagine that things might start picking up again soon—and when they do, almost all stocks in the sector will benefit.

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Sebbster@Sebbster

1Mon

@jkb92 All right. Could you maybe give me access to your portfolio so I can take a look at it? I'd be
interested

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jkb92@jkb92

1Mon

@Sebbster Can you see it now? I don't usually have it open because the import isn't working properly and the portfolio isn't quite where I'd like it to be yet, but I've made it available for now—or at least I've tried to.

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Sebbster@Sebbster

1Mon

@jkb92 I can see it, thanks :) Well, at least yesterday. Not anymore, haha

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Chris@Multibagger

1Mon

Did you buy it in Germany? The spread and price are worse than in the U.S., when converted.

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jkb92@jkb92

1Mon

@Multibagger I already bought it yesterday with a reasonable spread. On Trade Republic.

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Sebbster@Sebbster

1Mon

@Multibagger You also had $SLI in your portfolio at one point, if I remember correctly, right? 🤔 I bought into $IPX again last week. It seems like a good entry point to me—what do you think?

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Chris@Multibagger

1Mon

@Sebbster $SLI I was in it for a very short time. I'm holding onto $IPX, even though all the profit I made in the meantime is gone.

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