Rare Earth Metal ETF Could Show Explosive Upside Breakout
REMX Van Eck Vector's Rare Earth Strategic Metals ETF,
rose over 3 % today, making it's gain in May now over 6 %,
while the Dow comparatively is down 6 % for the month.
That type of bullish divergence means something very bullish is going on under the radar
that market participants are recognizing, and thus want to own , and accumulate.
China controls 70 % of the market in Yttrium, Y on the Periodic Table
a rare earth metal,which is an important part of batteries used for smart phones.
According to a very fascinating piece in Barrons.com online,
China could now use it's leverage in this rare earth metal, Y
to cut, and limit worldwide exports of Yttrium, in the trade war with the US.
Chart shows a 50 % decline from 32 to 16.
And recently it broke thru 16, to apparently start yet another leg down.
However REMX has been rallying back towards its breakdown point at 16 this month,
with above average volume accompanying the move.
A rise back above 16 in REMX would confirm a "false breakdown"
and set the stage for an unexpected and thus bullish reversal,
the kind which could be explosive to the upside,if short's start covering their bets,
and China starts to massively limit it's exports of Yttrium to the rest of the world.
Watch REMX for a very speculative play,
high risk, yet with... very high potential return.
REMX Last 15.34
THE_UNWIND
5/29/19
NEW YORK
rose over 3 % today, making it's gain in May now over 6 %,
while the Dow comparatively is down 6 % for the month.
That type of bullish divergence means something very bullish is going on under the radar
that market participants are recognizing, and thus want to own , and accumulate.
China controls 70 % of the market in Yttrium, Y on the Periodic Table
a rare earth metal,which is an important part of batteries used for smart phones.
According to a very fascinating piece in Barrons.com online,
China could now use it's leverage in this rare earth metal, Y
to cut, and limit worldwide exports of Yttrium, in the trade war with the US.
Chart shows a 50 % decline from 32 to 16.
And recently it broke thru 16, to apparently start yet another leg down.
However REMX has been rallying back towards its breakdown point at 16 this month,
with above average volume accompanying the move.
A rise back above 16 in REMX would confirm a "false breakdown"
and set the stage for an unexpected and thus bullish reversal,
the kind which could be explosive to the upside,if short's start covering their bets,
and China starts to massively limit it's exports of Yttrium to the rest of the world.
Watch REMX for a very speculative play,
high risk, yet with... very high potential return.
REMX Last 15.34
THE_UNWIND
5/29/19
NEW YORK
These rare metals represent only a very tiny fraction of the world economy.
This may be more symbolic than anything else in a trade war.
Does symbolism matter ? Sure.
However that causes bubbles in finance when bank is symbolic.
Technically REMX was down sharply on 5/30/19
putting in almost 10 % Distribution Bar on the 4 Hour Chart, Below Resistance.
At this time, I no longer wish to invest in this security.
If anything material changes in the future, I shall let you know.
THE_UNWIND
5/31/19
NEW YORK