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Rare Earth Metals Roar! SPX, Nasdaq, REE, MCP, AVL, WLT, ANR, MEE, SINA, SOHU, BIDU


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One of the big stories on the market today was that prices for rare earth metals have gone way up since a year ago!  Comparing to just a year ago, China's exporting price for rare earth metals has gone up 9 times!  Rare earth metal stocks soared today.  REE jumped a whopping +24.08%; MCP vaulted +17.66%; AVL was up +13.2%.

In the Trading Room, we were playing the April 48 calls:
March 22, 2011 7:27 AM
up $3

March 22, 2011 8:41 AM
up 9%

March 22, 2011 9:48 AM
Apr 48 calls more than tripled from open

March 22, 2011 9:50 AM

should test $50 soon...

March 22, 2011 11:35 AM
those 48 calls are $4.6!!

March 22, 2011 12:46 PM
those 48 calls added another $1 at $5.6

MCP closed at $52.57 for the day and those Apr 48 calls closed at $5.7!  Both REE and MCP look a little short-term overbought.  But, today's jump is a breakout from the range-trading in the past 2 months.  We could see both of these test their recent highs (REE $18; MCP $60+).

Coals continued to draw buyers.  WLT was up almost $2.  MEE popped +3.17% while ANR added +1.57%.  Chinese internet stocks also kept their strength.  BIDU gained +2.49%; SINA climbed +1.77% (after yesterday's +5.7% gain); SOHU managed to close above $80.

The Dow was down 17.9 points; SPX slid 4.61 points; Nasdaq fell 8.22 points:

XME (metals and mining) was up +1.04%.  USO (oil) went up almost 2%.  SLV (silver) glided higher while GLD (gold) was flat.  SOXX (semiconductors) slid 0.91%.  XLF (financials) closed down 0.53%.  FXI (Chinese ADRs) was slightly higher.


SPX fell 4.61 points to close at 1293.77.  The daily MAs slipped while MACD went up.


Nasdaq dropped 8.22 points to close at 2683.87.  It closed at its 10-day MA.  The MACD was slightly higher.

Although there were pockets of strength today, both SPX and Nasdaq closed below their respective resistance levels (SPX 1300 and Nasdaq 2700).  The market is very mixed right now.  Techs have been on the weak side, but, some internet leaders are staying strong (ie. NFLX, PCLN).  Energy and mining stocks have been strong for the past week.  Financials popped on Friday on the "dividend news", but, have not been able to break higher.  We're waiting patiently for the market to show clearer signals and watching the above-mentioned resistance levels.  On the other hand, the 3 areas that I talked about today, namely coals, rare earth metals, and Chinese internets, could do well on the upside, especially in a stronger market environment.

Good night and HappyTrading! ™ (click to see our Facebook Page)