If you plot share prices of the leading lithium stocks side by side, they seem to trade almost as twins. That’s SQM, Albemarle, and Livent. Tesla is arguably their largest end user. Tesla stock seems to follow the same trends.
I had planned on looking at Lithium much closer this weekend as the $LIT daily chart is setup for a breakout.
I see correlations in commodities and other “hot” sectors all the time these days. There are days that the 8 or 9 stocks Saul is hot on all swoop and rise, like a murmur of birds, some at the top of that moving flock, some at the bottom, and all of them - for the most part - stocks swooping and diving in a same sector at the same time of day.
The easiest way to view if something is outperforming or lagging when comparing on stockcharts.com is to label your first stock, let’s say $SQM.
Here’s the $SQM daily chart showing Friday’s breakout from its downtrend reversal
Then you place a colon after $SQM and go to your next chart . . .
Then add another symbol.
Let’s add the Lithium ETF which is $LIT
Here is $LIT daily chart
Okay, just eyeballing, I can tell without charting $SQM: $LIT that the image will show a long uptrend, where $SQM outperforms the whole $LIT sector.
Here’s the $SQM:$LIT chart to show that ratio of performance clearly shows $SQM was a bargain for months outperforming many other mining stocks because $SQM is heavy into Lithium mining and has been signing deals left and right with car manufacturers who are now vertically integrating with the manufacturing of batteries with/without partners.
Here’s the $SQM: $LIT daily chart. Notice in the past 9 months, $SQM has only seriously one time underperformed $LIT, and that was during most of JUNE 2022.
For an even cleaner look at comparing a stock to another stock, or a stock to a sector, I prefer using the weekly chart to see more clearly the trend.
Here is the weekly chart for $SQM: $LIT, and this chart doesn’t take a split second to identify that $SQM has been outperforming the $LIT etf for most all of 2022:
p.s. Another scan you might screen is for stocks which are above their 250 EMAs and their SCTR (pronounced “Scooter” score by T/A users on stockcharts.com)
Let me do one now, spit out the list, and show you how you can find the hottest stocks in every sector.
Anything with a SCTR rating of 90 or above is one outperforming the markets and respective sectors. Sometimes, these SCTRs for respective sectors can blow past 90 as well. For instance, I played $USO for a nice haul over the past few weeks. And $USO was above 90 SCTR the entire time I was trading it.
But back to the list so that you have an idea of the power of stockcharts.com and its scans.
Stocks I want to trade more stocks with these criteria already showing:
We want the 20 x 50 EMAs to already be in a bullish crossover on the daily
We want the 17 x 43 EMAs to already be in a bullish crossover on the weekly chart
We want over 1,000,000 shares trading daily
We want to trade shares over $1.00 in price
We want the SCTR to be above 90
Okay, here’s my Boolean math & coding for the above scan
[today’s EMA(20,close) > today’s EMA(50, close)]
and [close > EMA (250)]
and [Volume > 1,000,000]
and [country is US]
and [Close > 1.00]
and [SCTR >90]
Ach, let me try a screenshot instead:
Running the above scan we get the following screen which I will list from the highest SCTRs to those with a score of 90.00
I will also attach the sector/subsector names in the profile. So here is our first look at 145 symbols which meet the criteria above:
p.s. You will notice $SQM did not show up in this scan despite having a high SCTR. The reason is I am surfing just US stock symbols and US etfs in the scan above which spit out 145 symbols meeting these qualifications.
This scan is one I refer to daily and which I might begin posting daily if it helps other traders here.
When I add in my trendlines and pattern recognitions, I’m good to go and trade with confidence as I am trading the strongest symbols in all sectors of the USA stock markets and ETFs.
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In my 90-day % gain method lithium was a top performing sector. LTHM, Livent, the FMC spin off, was best, but Albemarl also did well. LIT etf has lots of small Chinese player in addition to the leaders.
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