Abstain From Getting LIT During The Drunken EV Rage

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About: Global X Lithium ETF (LIT), Includes: ALB, BMWYY, BYDDF, CARZ, DRIV, GM, NIO, PALL, SQM, TSLA
by: Holden Brooks Weaver
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Holden Brooks Weaver
Currencies, global macro, commodities, energy
Summary

Although the demand for lithium is soaring, marginal increases in supply are developing.

The auto industry is pointing towards signs of struggling in tandem with EV's, with subprime loans souring at the fastest rate since 2008 and sales declining.

Technicals glare towards a sustained downtrend in some of the most liquid auto industry ETF's.

Both Albemarle Corp. and Sociedad Química y Minera de Chile S.A., the largest holdings in LIT, have been downgraded.

Throughout the remainder of FY 2019 and the latter half of 2020, LIT may be primed for a play to the downside.

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Lithium (NYSEARCA:LIT) demand has soared as the EV boom has gained larger prominence within the