PROTECT PROFITS ON RARE EARTH STOCKS MOLYCORP $MCP AND RARE EARTH ELEMENTS $REE
We have large profits on our shorts on Molycorp $MCP and Rare Earth Elements $RRE . It appears that momentum fever has broken and our thesis is coming true. We expect these stocks to go much lower. However, in view of high short interest in these stocks and bullish market environment, potential of a short squeeze is real. We suggest using a series of tight trailing stops to protect profits while not giving up on profits getting bigger.
Our average short price is $36.35 on MCP and $11.47 on REE.
December 5, 2010