23Jan3:49 pmEST

Some Serious Voodoo Charts

The "rare earth" stocks caused a good deal of pain to traders on the U.S. exchanges several years back. It is hard to find many tickers trading here now, though, as the REMX ETF (below on the daly chart) for rare earth mining stocks is composed mostly of obscure firms trading on foreign exchanges. 

Nonetheless, the improved price action is undeniable. REMX is trading rather thinly these days in terms of volume. But volume is ticking higher today on a relative basis as the ETF rallies. Beyond that, the ETF may spread the risk out rather than buying any one rare earth firm. 

Materials and miners mostly benefitted from the lower Dollar today. So if the greenback continues to correct I would consider a speculative REMX long this year to play what has thus far been a quiet comeback for rare earths. 

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