I had a short term position in Katanga Mining Limited (KAT.TO) and I was expecting a boost for this stock based on Tesla’s results. Cobalt is a metal used in electric cars similar to Lithium . Unfortunately for me I didn’t see any sort of gains for KAT.TO correlating to Tesla’s results. I did see a 7% gain in Lithium stocks – in both LAC.TO / LACDF and PE . I own a small position in PE and I just sold a large position in LAC.TO earlier this week for a 9.5% gain. This tells me the Lithium stocks are positively correlated with Tesla and the cobalt stock didn’t have a noticeable correlation. This may be oversimplifying and there may have been other facts – but it is good enough for my future trades !
My strategy for KAT.TO for tomorrow is to sell at a 2 to 3% profit . I want to keep this as a short term trade, since I have a large amount of risk currently in this portfolio from Snapchat !