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REE/Strategic Metals Concentrator, Dec. 29, 2010


Here's a chart of some of the leading REE stocks I track.  Note that (OTCPK:GDLNF) forms upward resistance for all the others, with very few exceptions.  I see this stock as representing a surprisingly effective bellweather for the sector.  ALL the stocks are showing the effects of the recent spike, but the group breaks down into rough thirds:  Greenland, MCP, Hudson, Avalon and Quest form the upper third, with REMX splitting the seam.  Great Western and Lynas have the solid middle, while QSURD and ARAFF pull up the rear.

Note the "pinching" effect as the recent news is concentrating all but the last 2 into a tight formation near the top of the scale. 

Wow, we ran through that last REE/Strat. Concentrator in a hurry!  Caught me short this morning, so this is one that I will polish and add charts to as the day goes on!

TIme for a snapshot of the REE/Strat. stocks I track most frequently.  Some real winners and losers today:

(OTCQX:ALKEF) up 15.85%.  I know we have a regular participant who likes this one a lot.
(OTCPK:ARAFF) up 15.63%
(OTC:MTCEF) up 15.13%
(OTCPK:LYSCF) up 14.45%
(OTC:TASXF) up 13.29%
(OTCPK:GDLNF) up 12.50%
(OTC:PMNHF) up 9.83%
(OTCPK:MLLOF) up 9.04%
(NYSEMKT:GMO) up 8.96%
(OTCPK:NATUF) up 8.15%
(MCP) up 6.82%
(NYSEARCA:REMX) up 5.79%
(TC) up 3.87%
(NYSEMKT:DNN) up .91%
(OTCQX:UURAF) up .90%

Then the losers:

(OTCPK:DCHAF) down .04%
(TIE) down .24%
(NYSEMKT:AVL) down .62%
(OTCPK:HUDRF) down 1.37%
(EMMCF.PK) down 1.64%
(RBY) down 2.88%
(QRED.PK) down 2.95%
(OTC:QSURD) down 3.54%
(OTCPK:GWMGF) down 4.44%

This makes for an interesting pattern.  One thing that tracking all these has taught me is that the market is constantly selecting for many factors...  And one key factor we have frequently discussed is timing, and the narrow window in which REE resource plays will either blossom or be relegated to the shelf.  IMO, any REE stock which is underperforming today has a problem with the game of musical chairs which is starting to unfold.

Its also noteworthy that those more pure stategic metal plays are doing their own thing, and not really tied to REE apron strings in a reliable fashion.  GMO is up, yet RBY is down, while TC is somewhere in the middle.

AVL, which was benefitting from its location on a major exchange a few days ago, is now getting the downside of that sort of visibility - the vulnerability that their high profile gives when they represent a shorting opportunity in a dynamic market situation.  This "whipping boy" status will tend to rotate among sector inhabitants in a normal market, but REE plays are SO truncated (only MCP, AVL and REE are listed on major American exchanges) that this effect is exaggerated.  MCP's very limited number of shares available for trade is another strong factor.

Disclaimer:  Author is long MCP, LYSCF, ARAFF, GWMGF, MLLOF, HUDRF, GDLNF, EMMCF, MTCEF, QREDF, QSURD, TASXF, AVL, PMNHF, UURAF, NATUF, GMO and RBY.