This is an example of trying to out-smart the market: 
“Soon everyone is going to be driving electric cars and those cars need batteries and those batteries need Lithium – so I’m going long LAC  and holding it for a year” – The problem with this? The entire premise of the logic is based on the notion that they are the first person to think of this, and thus the current price of the stock does not reflect anticipated enthusiasm for the future need of Lithium because nobody else has yet to consider it a possibility. It would mean that no Institution and/or enough retail traders have started buying the stock and it is currently under-valued for that reason.    There is either an extraordinary amount of arrogance or naiveté (or both) that goes into this line of thinking.  
An example of having a thesis on the market is: 
Investors have begun to see the latest FED minutes as more Hawkish than they originally thought – and the recent positive economic numbers will only further convince the FED that the economy can handle larger rate hikes – this has dampened the bullish enthusiasm we saw after the CPI indicated the first real reduction in inflation in awhile.  Afraid that the Jackson Hole conference will end with Powell indicating a .75 hike and continued aggressive action to control inflation, even at the risk of inducing a Recession, has caused Investors to cool down their buying spree, even despite the better than expected earnings results across the board.   This fear has led to break the $417.50 support, and if the attitude is indeed more Hawkish coming out of Jackson Hole, we may soon see the $300’s again.  So my thesis is that this market is Bearish and only an indication of a Dovish Fed will stop the return to the downward selling pressure.
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