Nope, I’m not talking about brewing up a batch of moonshine that would make your grandpappy proud…
I’m talking about a bonafide 3 bagger opportunity, even with all the systemic risk we’ve currently got on the horizon.
Why do I say this? Well, for starters there’s 60 billion reasons packed into the Inflation Reduction Act.
That’s how much the bill earmarks for “green energy” solutions.
Whether it be EVs, Solar Panels, or Windmills… the renewable energy sources all need batteries… and batteries need lithium or “white lightning” as I like to call it.
And there’s a lot of reasons to suspect that we’ve got systemic tailwinds in the market…
For starters – we are seeing failed auctions lower, very similar to what we talked about on Tuesday with the “failed breakdown” in the stock market.
Stock Chart
We have a key level right at 29.50. It’s a key pivot level from the past year’s trade, and over the past two days there has been a failure to break back below it.
You also have a swing AVWAP from the recent lows, right at that level, where buyers have been scooping up shares aggressively.
You can start looking for a breakout to new all time highs if this low holds.
Which is great, but you also need to structure your trade the right way to maximize your returns relative to your risk.
