Rare Earth Chart Comparison

Thought I would toss a comparison chart up of the most traded and discussed Rare Earth stocks. First thing that jumps out to me is the extremes – we just saw an AVL breakout and and total lack of participation from REE.

Why have prices gone through the roof over the last week?  Easy – China:

Effective April 1, China will impose a heavier tax on rare-earth minerals. According to the Chinese state-owned media, Xinhau, the tax has been set at 60 yuan ($9.14) per ton of light rare-earth minerals, and 30 yuan ($4.57) per ton of medium- and heavy-rare earth mineral.

click to enlarge

Notes:  AVL and REE both have around 18% short interest with MCP hovering around 10%.

My initial thought is to watch the bull flag on REE for a possible laggard catch up.