Mish's Market Minute

Mish's Daily: Lithium -- The Electrification of Transportation

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The lithium market is insignificant in comparison to more established commodity markets – yearly global oil output is worth more than $3 trillion at present rates.

The race to secure lithium supplies is on. 

While lithium demand multiplies, geopolitical concerns between China and the West have made securing a reliable supply of lithium more difficult. Lithium is becoming one of the world's most-sought commodities, yet the annual amount globally is still tiny. Battery makers and EV manufacturers have been rushing to lock in supplies. The electrification of transportation, tight supply, and robust EV sales are causing prices to skyrocket.

Do you know the best way to trade Lithium profitably? Or how to position your trading in anticipation of this secular trend?

Global X Lithium & Battery Tech ETF (LIT) broke out above the 50-day MA and is looking to take out the 200-day MA.

The Global X Lithium & Battery Tech ETF (LIT) provides investors access to companies involved in the entire lithium cycle, from mining and refining to producing lithium batteries.

Lithium's importance to the global economy will only increase in the coming years as we move towards a more electrified world.

LIT is displaying strong price leadership, as seen by the MarketGauge Triple Play Leadership indicator, with the blue line above the red line indicating that LIT is leading the market. LIT also displays improved price momentum in the MarketGauge Real Motion Indicator. The Real Motion Indicator and the Triple Play Indicator aid trading performance by validating price direction and momentum strength.

LIT is an ETF that offers global exposure to the Lithium market, so if you're looking to position your trading for the future of transportation, consider adding LIT to your portfolio holdings. We expect strong demand coupled with Lithium's restricted supply to sustain a favorable pricing environment for the foreseeable future.

Contact us today if you want to get started trading and learn how we can help you trade and capitalize on big trends. You can sign up for a consultation with Rob Quinn, our Chief Strategy Consultant, to learn more about Mish's Premium trading service.

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ETF Summary

  • S&P 500 (SPY): 375 support, 383 resistance; same as before.
  • Russell 2000 (IWM): 177 support, 183 resistance; same as before.
  • Dow (DIA): 328 support, 333 resistance.
  • Nasdaq (QQQ): 266 support, 273 resistance.
  • KRE (Regional Banks): 62 support, 65 resistance; same as before.
  • SMH (Semiconductors): 197 support, 204 resistance.
  • IYT (Transportation): 212 support, 217 resistance.
  • IBB (Biotechnology): 127 support, 132 first resistance; same as before.
  • XRT (Retail): 58 support, 63 resistance; same as before.


Mish Schneider

MarketGauge.com

Director of Trading Research and Education


Wade Dawson

MarketGauge.com

Portfolio Manager

Mish Schneider
About the author: serves as Director of Trading Education at MarketGauge.com. For nearly 20 years, MarketGauge.com has provided financial information and education to thousands of individuals, as well as to large financial institutions and publications such as Barron’s, Fidelity, ILX Systems, Thomson Reuters and Bank of America. In 2017, MarketWatch, owned by Dow Jones, named Mish one of the top 50 financial people to follow on Twitter. In 2018, Mish was the winner of the Top Stock Pick of the year for RealVision. Learn More
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