Josh Brown, the Reformed Broker, had this to say today about Lithium.
The Reformed Broker: Lithium
I met Josh at a conference last year and even though he is young (maybe 40) I like what he has to say… most of the time.
So, I checked out the price action on the names he mentioned. Very interesting.
Josh is not in the Global X Lithium ETF (LIT) but I like it.
Here is the weekly chart from late 2010.
Global X Lithium ETF (LIT) weekly
Price has cleared a six year congestion zone…bullish. Price will likely make attempts to clear targets, the green horizontal price points.
Risk is about 15%. I would get out around $27. I’m recommending it and I’m buying some today.
I also like Albemarle Corp (ALB). Here is the weekly chart from late 2008.
Albemarie Corp (ALB) weekly
Risk is pretty high on this one as well…about 20%.
I’m buying this one too today.
The ETF, symbol LIT, holds less risk than ALB. If you are risk adverse you should just buy the ETF or at least buy less ALB.
Trade Smart,
Don