Petra Hess of PetraPicks.com has held the Global X Lithium & Battery Tech ETF (LIT) since January and loves the fund. With a gain of nearly 30 percent over the last six months, there’s plenty to like, but on Wednesday Hess saw signs that it had gone too far, to fast in the form of a bearish engulfing candle in the chart of LIT, meaning it opened higher than Tuesday’s price action and closed well below it. She’s now anticipating a pullback of roughly 10 percent or more. If LIT starts trading on Thursday below Wednesday’s close, she will start selling her position and — because she likes what the fund does and the exposure it gives to the industry — will look for a bullish candle to give her a buy signal in the future.
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Petra Hess runs PetraPicks.com and is a technical swing trader and long-term investor in domestic and Canadian stocks and ETFs. She had shares in LIT when she recorded this interview on Sept. 20 and was planning to sell them on Sept. 21 if the price action moved as described in this podcast. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.

Author: RagingBull

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