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Molycorp (MCP +15.7%) soars, taking the rest of the rare earth sector with it (AVL +6.2%, REE...

Molycorp (MCP +15.7%) soars, taking the rest of the rare earth sector with it (AVL +6.2%, REE +11%, REMX +1.7%). Traders describe the move as the continuation of a short squeeze in Molycorp - whose shares dropped below 6 in mid-November after being in the mid-30s 7 months earlier. Adding fuel is a report Interactive Brokers has said there is insufficient stock available for short sales.
Comments (11)
  • lew69sd
    , contributor
    Comments (54) | Send Message
     
    MCP to tha moon!
    10 Dec 2012, 12:09 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5523) | Send Message
     
    Naked shorting should be illegal.
    10 Dec 2012, 12:25 PM Reply Like
  • Cashmeifucan
    , contributor
    Comments (11) | Send Message
     
    Now you tell us this. Thanks a bunch. They say that no one ever made any money trading the news...As for shorting. It doesn't add real value and causes unnecessary volatility, but we are in a casino so whatever, whatever...
    10 Dec 2012, 01:34 PM Reply Like
  • Manxbuilder
    , contributor
    Comments (195) | Send Message
     
    I agree with Michael. I'm going to take it a step further. I feel that shorting period, along with options and HFT's should all be illegal. They have taken what is supposed to be a market and changed it to gambling. The big winners are the market makers just like the Casinos are the winners in gambling. They have turned what was intended to be an auction of stocks into a roulette wheel. MCP was unfairly taken to the woodshed. Shorts burned it to the ground. Now it will go back up as shorts cover. The whole system is a joke.
    10 Dec 2012, 01:55 PM Reply Like
  • Skaterdude
    , contributor
    Comments (576) | Send Message
     
    Let's hope that covering is VERY expensive. ;)
    10 Dec 2012, 02:19 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5523) | Send Message
     
    If it goes up, all the better. I held (MCP) from the peak down to $10. If I buy back now and it goes back to the peak, I can recover most of my losses (and can deduct the previous losses on my tax return).
    10 Dec 2012, 03:28 PM Reply Like
  • dook
    , contributor
    Comments (43) | Send Message
     
    Thank you, Manxbuilder, for laying out the charges against the system. You should add high frequency trading to the list, which distorts the market and hurts average investors. If regulators and Congress were capable of independent action, these abuses would have been long ago remedied.
    10 Dec 2012, 02:08 PM Reply Like
  • financialguru
    , contributor
    Comments (5) | Send Message
     
    Thats what manx meant when he said HFT.
    10 Dec 2012, 03:32 PM Reply Like
  • Global37
    , contributor
    Comment (1) | Send Message
     
    Shorting is a necessary part of the market dynamic. Without short sales, when stock falls it would hit ZERO on the panic. When a person shorts a stock... they are obligated to buy it at a certain point causing the stock to rebound and swing upwards again. So before you make the stock market a stagnant socialist graveyard with more regulation, please take a moment to understand how the market works.
    10 Dec 2012, 03:00 PM Reply Like
  • Salieri
    , contributor
    Comments (76) | Send Message
     
    Just wondering when CNBC's Cramer comes up with another negative comment on MCP to help out his hedge fund friends who are short the stock,
    10 Dec 2012, 03:02 PM Reply Like
  • wildfirexx
    , contributor
    Comments (107) | Send Message
     
    I don't know Global37, I've had a few stocks recently hit near zero in a short time probably because of shorting online. And look how gold is manipulated through naked shorting by the big boys like J P Morgan and Goldman Sachs. Is that fair ? Now, a fair market would be based on long term fundamentals of a company and not on day to day shorting!
    10 Dec 2012, 03:23 PM Reply Like
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