$LIT: EV's Lithium-Powered ETF – Charging Up or Running on EmptyAMEX:LIT : EV's Lithium-Powered ETF – Charging Up or Running on Empty?
EV demand is up 35% in 2023, and lithium prices are up 8% in 2025 so far. But AMEX:LIT is at $40.82, down from last year. Is it time to buy, hold, or sell? Let's dive in.
(1/9)
Good morning, everyone! ☀️EV demand is up 35% in 2023, and lithium prices are up 8% in 2025 so far. But AMEX:LIT is at $40.82, down from last year. Is it time to buy, hold, or sell? Let's dive in. 🔍
(2/9) – PRICE PERFORMANCE 📊
• Current Price: $ 40.82 💰
• Sector Trend: EV sales globally strong (35% growth in 2023, IEA) 🌟
It’s volatile, with EV growth as a tailwind! ⚙️
(3/9) – MARKET POSITION 📈
• Market Cap: Approximately $ 1.37B (based on $ 40.82 price and 33.5M shares, per Apr 30, 2024, data) 🏆
• Holdings: 40 stocks, top include Albemarle, Tesla (per Global X ETFs) ⏰
• Trend: Lithium demand tied to EV penetration, per IEA data 🎯
Firm, riding the battery wave! 🚀
(4/9) – KEY DEVELOPMENTS 🔑
• EV Demand: Continued rise in 2025, per general expectation and IEA trends 🔄
• Lithium Prices: Mixed, with spot prices varying; ETF at $ 40.82 reflects market conditions 🌍
• Market Reaction: Reflects current market dynamics, no specific Mar 3 data 📋
Adapting, EV surge drives interest! 💡
(5/9) – RISKS IN FOCUS ⚡
• Oversupply: Fears may cap lithium gains, per industry reports 🔍
• Competition: New battery tech could shift demand, per industry reports 📉
• Volatility: Lithium prices historically swing, per Reuters 2023 data ❄️
Tough, but risks loom! 🛑
(6/9) – SWOT: STRENGTHS 💪
• EV Growth: Demand for lithium batteries rising, per IEA 2023 data (35% global sales increase) 🥇
• Diversification: 40 holdings across mining, battery tech, per Global X ETF 📊
• Sector Leader: Exposure to Albemarle, Tesla, per Global X ETF 🔧
Got fuel in the tank! 🏦
(7/9) – SWOT: WEAKNESSES & OPPORTUNITIES ⚖️
• Weaknesses: Price volatility, current price down from last known, oversupply fears 📉
• Opportunities: EV sales growth, potential lithium price recovery based on demand, per IEA trends 📈
Can it capitalize on demand? 🤔
(8/9) – 📢 AMEX:LIT ’s at $ 40.82, EV demand climbing, your take? 🗳️
• Bullish: Price to rise with EV surge 🐂
• Neutral: Steady, risks balance ⚖️
• Bearish: Oversupply or other factors cap gains 🐻
Chime in below! 👇
(9/9) – FINAL TAKEAWAY 🎯
AMEX:LIT ’s EV demand drives potential 📈, but current price at $ 40.82 reflects market caution. Volatility bites, yet dips are our DCA gold 💰. We grab ‘em low, climb like pros! Gem or bust?
LIT trade ideas
Spring in formation, capitulate quickly and then reverseBeen on a downtrend for almost 3 yrs.
Just broke the support trend line which will shake out and cause max pain to remaining retailers.
RSI heading towards oversold on Weekly.
Should reverse in a month or so. We are looking for lots of volume at the bottom and quick rally back up.
Watch for positive lithium related news coming out from news outlets
LIT ETF updateStill in the Red for this ETF, a little disappointing since Electric vehicles will need lots of lithium. I will want to buy more at later stage when I see an uptick of sales of EV globally.The adoption rate is not as high as many expected with infrastructure, conversion, batteries, etc issues still hanging.
I am looking at end 2024 to early Q1 2025 to review this chart again......
LIT Long Term OutlookBulls appear to be holding on and pushing through the TREND LINE OF PAIN. Price has been holding up steady to the famous 50 yard line. Some of you might be using shorter EMA's and that's okay. Long term outlook suggests we may come across the 200 EMA line sooner than later.
This trend line has been intact for almost an entire year.
An upward breakout is imminent...
As always, set your stop losses accordingly.
Looking for double bottom, then breakout of long term resistanceAnother drop back to 0.236 support. RSI oversold at this stage on Weekly.
Double bottom expected then side ways movement to long term resistance trend line, consolidate around breakout zone then breakout of a long term bear market for Lithium.
I would start building lithium positions when it hits the 2nd bottom at 0.236.
Global X Lithium & Battery Tech ETF - Support & resistanceOn the above 2-week chart of the Global X Lithium & Battery Tech ETF price action has corrected 60%. A number of reasons now exist to be long.
1) Support and resistance. In 2011 and 2017 price action found strong resistance exactly at $40 before breaking out in 2020 for a massive 140% gain. Price action has now returned to $40.
2) RSI resistance breakout.
3) Seller capitulation. Regardless of market seller capitulation into past resistance is a wonderful thing. Always a gift horse, lets not start counting teeth.
It is possible price action corrects further? Sure.
Is it probable? No.
Ww
Type: Trade, not investment.
Risk: <=6%
Timeframe for long: This month
Return: 40%
Lithium Recovery LIT LONG - Dec 23 (🐲🏔️JDSMF)The Hypothesis
Since Nov 2021 after the COVID19 spike, Lithium prices have taken a beating and have been trending downwards. My hypothesis is that the previous spike was hype mainly driven by COVID19 speculative behaviour and if we just discount that overvaluation we will be at a fair price that has not included the continual demand, the consumer shift in acceptance and the development of supporting infrastructure.
In my opinion fear has also been factored into price with weaker hands leaving.
There are few reasons for this drop
Jan 2022 to Dec 2023 - Back to back interest rate hikes
Slow down of retail traders after the meme stock boom
2023 - Biden’s policies that are restricting the usage and subsidies on CN lithium EV batteries to help US capability catchup
2023 Over production of Lithium
- 2023 - China slowdown resulting in a drop of Lithium orders
- Sep 23 - Ford Halts construction of Michigan Battery Plan
The Parabolic Catalyst
EV demand has continued to increase, even if it has slowed in 2023
Dec 2023 the Fed has announced rate cuts and this will improve liquidity at least for the companies.
2023 EV prices are getting closer to combustion vehicles, this will also help spur volume growth
The key reason I have pegged that the sector is turning around is the acquisition of smaller companies. They have done their due diligence and have determined that the current prices have headroom to grow and are bullish on the future volume needs
- 21 Dec - Chile's lithium miner SQM joined hands with Gina Rinehart, Australia's richest person and mining magnate, to propose acquiring Perth-based miner Azure Minerals for $1.1B.
- LTHM's merger with Allkem is expected to bring synergies and diversification of assets, making it one of the world's largest lithium companies
- Chinese battery maker CATL and automaker Volkswagen [OTCPK:VWAGY are likely the final bidders for Sigma Lithium NASDAQ:
The Fair Price
30.13 in my opinion is a fair price this is 50% of the Pre COVID + COVID19 spike range. However for this trade, I entered at 49.31 with a risk of -39.32%
What Factors Would Break This Hypothesis
The discovery of a new battery material that is lighter and has more range
Looking for a big bounceBeen beaten down for a couple of years, but we're in the 0.238 zone on the fib retracement chart where we would need to see some reversal to continue the upward trend.
Fundamentally, there is still a strong demand for lithium so upward trend is in play.
I believe this correction is almost over and we will start upward trajectory.
This is a Weekly timeframe so it may take some time for this to take effect.
3 tips to save more money during inflationRead this recent article here
I often wonder why there are so much emphasis of going to school globally, mandatory in some countries up to a certain level yet the contents of what are being taught are not revised or change to match the current economic condition. Could this be some form of conspiracy theory where the parties involved do not want its people to become rich or financially independent ?
It is no wonder people are feeling anxious and stressed up when all they see are rising costs and stagnant wages. In an expensive city like Singapore, I felt the pinch too and have recently make some drastic changes to curb my expenses.
One, take a piece of paper and write down all the recurring monthly expenses that you need to pay. Eg. mortgage, utility, phone, WIFI, barber ,etc
So, the large items like mortgage and utility bills are quite hard to reduce the amount . We can start with the easier one like going to the barber. For months now, I have been cutting my own hair and my son's hair. This saves us S$20/month or S$240/year. A trip to the barber will costs you $10/person. Just go online and buy an electric shaver for hair (not moustache) and learn to cut your own hair.
Next, eliminate or reduce meat from your diet. I have been a pescatarian for years and now with fish price going up , I am going vegetarian as well. In addition, I also try to grown some edible plants like maple beans sprouts, hibiscus and Queen of the Night . I have also included one simple r ecipe that I prepared recently.
Many of the dishes you can go to any cookery websites or google for videos to learn from it. Try those with simple and inexpensive ingredients you can get locally , avoid the imported, high end stuff.
Lastly, exercise. I cannot stress enough the importance of keeping oneself fit and healthy. Think about it - isn't all your dreams , aspirations ride on this one fundamental backbone - your health ? Without it, how can you pursue your lofty goals ? I run about 2 x a week and swim 3-4 x a week. Thus far, I am very blessed as I have not seen a doctor for decades. Exercise not only boost your immune system but also provides you the mental wellness you need to combat the daily stress and anxieties we faced.
I hope this is useful for some of you and would be happy to exchange more ideas in the future.
A must have - Lithium for EV vehiclesInstead of choosing individual battery company to invest, it can be a daunting task and some investors may like a broader category like LIT ETF which includes many lithium manufacturers.
For easy reference , here's the list :
All 40 Holdings
Holding
Weighting
Albemarle Corp (ALB) 18.83%
Sociedad Quimica y Minera de Chile SA (SQM) 13.12%
Tesla Inc (TSLA) 7.17%
Varta AG (VAR1:XETRA) 5.98%
GS Yuasa Corp (6674:TYO) 5.34%
Livent Corp (LTHM) 5.03%
EnerSys (ENS) 4.92%
Panasonic Corp (6752:TYO) 4.86%
Simplo Technology Co Ltd (6121:TWO) 4.78%
Samsung SDI Co Ltd (006400:KSC) 4.50%
LG Chem Ltd (051910:KSC) 4.42%
Byd Co Ltd (1211:HKG) 4.38%
Orocobre Ltd (ORE:AUX) 1.81%
Pilbara Minerals Ltd (PLS:ASX) 1.63%
Galaxy Resources Ltd (GXY:ASX) 1.35%
$TKM - TREK Potential swing back up.TKM had a huge move on the 3 Nov on the release of the below High grade Assays.
Looking for it to trade back into that range marked out on the chart which it currently is. The range low here is key.
I'm looking for a reaction off the range low, OR a break below range and a Deviation and reclaim of the range low would be bullish and my trigger point to enter long.
Cut all below orange line. PIPs are big risk is big,
Looking at LIT ETF for confluence looks like it may be at a relative support zone.
NOV 3 announcement
TREK METALS LTD ( $TKM $TKM.ax ) has released " High Grade Lithium Assays of up to 3.07% Li2O at Tambourah