Hey Guys,
We’ve been tracking the performance of the Lithium Miners ETF (LIT) over the last number of weeks in our Commodity Wrap-Up & have noted the relative strength in the sector. With the recent election, we wanted to wait to see which sectors would pull forward and emerge as leaders under the new administration announcement.
Lithium / Miners have been performing exceptionally well and deserve strong attention.
Before I get into the specifics - let’s look again at the Lithium Futures on the Weekly:
This is what complete agony looks like, if you’ve been riding the sector all the way down. On the other hand, this is what a screaming buy opportunity looks like, if you’ve been waiting patiently to buy at cycle lows. We think it’s time to begin aggressively positioning in the sector, based on Lithium futures pricing, which is confirming a major bottom. Lithium futures are down 90% off recent highs and have gone almost straight down for 100 weeks, but are showing bullish divergence - this creates incredible buying opportunities in assets that are steeply discounted.
LIT ETF:
All indicators are signaling strength. What makes this an ideal Long-Term Investment opportunity in our view, is because of the length of the bear market and intensity of the correction - miners have been completely hammered & left for dead. This is an early cycle bottom reversal - exactly the kind of setup RBE hunts for - an exciting theme with a long runway of growth, with many juniors trading at exceptional discounts.
Update on our Lithium Investment: