ADDING TO OUR SHORT POSITIONS ON MOLYCORP $MCP RIGHT HERE AROUND $34.70.AND RARE ELEMENT RESOURCES $REE AT $11.72
Image via WikipediaOne simply needs to look at the float and the volume traded today to understand that the move up in $MCP and $REE is massive short squeeze. The trigger for today’s move up is the report that China may ban export of rare earth elements to Europe and US.
There are several misconceptions in the market. First, for the most part the name rare earth elements is a misnomer. Most of these elements exist in abundance.
Second, there is a misconception that these elements are available only in China. Nothing could be farther from the truth. Due to cheap labor in China, western world mines simply could not compete on cost and went out of business.… Please click here or the title below to read more.
October 19, 2010