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New Money Rushing For Commodity Plays Yells Caution (NYSE:MCP) (NYSE:FCX) (NYSE:X)

Posted by Aadil on January 3, 2011 at 8:02pm
There seems to be a panic going on the extreme bullish side as money is running for commodity stocks. Molycorp, Inc. (NYSE:MCP) is surging to $57.78, +7.88 (+15.79%) while Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) is making new 52 week highs. Even United States Steel Corporation (NYSE:X) is getting into the action with a solid move higher, trading at $61.14, +2.72 (+4.66%). New money is rushing for the these plays, feeling it will be the easy, obvious gainers for 2011. As soon as I see this mad rush, I begin to get bearish on the whole commodity sector. However, while I begin to get bearish, patience and discipline stay strong, telling me to stand back for a few days and let the idiots pile in.  Once the crowd has pushed these stocks even higher, the shorts will be there to grab for solid profits. As of today and the next few days, new money is looking for a home. This is normal for the start of the year. To gain more analysis, guidance, swing trades and education, join the Research Center. Get a free trial today and test it out.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
#1 Rated8118266881?profile=original
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