Closing LTHM, Adding UVXY, NAM Update

 

We bought LTHM in August 2019, selling 2/3 almost three months ago for a gain of 149% on that portion.

 

Now we're closing the remaining 1/3 LTHM which finished today up 250% from our entry.

We'll add a 3rd UVXY position once it trades back above $10.80

 

It ended the session today at $10.58

 

No stop on UVXY positions.

 

These caveats still apply, written when we last bought UVXY in November:  

"Don't go too big on UVXY.  The world, and its markets, is unusually volatile.  As compelling as the short case is, it can certainly become more compelling.  If so, we'll go heavier on the short side at that time."

 

That time has come and now it seems almost irresponsible not to be short the overall market.

 

 

Investing legend Jeremy Grantham describes the current situation very well.

 

Click here to read Grantham's recent "Waiting for the Last Dance".

 

 

In our November 21 2020 post, linked above and here again, we announced entering New Age Metals which trades under ticker NAM in Canada and NMTLF in the U.S.

At that time it had last traded at $0.07 CAD and we noted it "looks to be in the process of breaking a down trend stretching back to January of this year."

 

The chart we presented showed the stock spiked higher at the start of each of the past 5 years, several times spiking very significantly higher.  

 

Here's that chart again:

Here's what we noted at the time:

 

"The blue circles show that near, or just after, the end of each of the past 5 years this stock shot higher.  Same situation now?

"The red lines show down trends broken.  Same situation now?

"Green shows that this stock is also in a year-long pennant formation, which in this case should resolve higher.

"The black lines show that downside is limited while above roughly $0.12 there's technical potential for it to skyrocket after breaking a 5-year down trend."

Here's what the chart looks like to us today, with the stock now 50% higher:

 

 

While we don't expect the mania in the so-called "clean" energy sector to run much higher, of course anything's possible in an all-out buying panic so with fingers crossed we'll keep holding New Age Metals.

 

If it hits the high teens, we're likely to sell at least half and if so we'll post an update to that effect.

 

Click here to visit the New Age Metals website.

 

 

 



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