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Molycorp (MCP) — Making Like A Shovel After Numbers

Simple Trading Principles

Those who follow Simple Trading Principles are either in cash or short MCP (check here and here for our previous looks at MCP).  We understand the desire to bottom fish on a sub $10 stock, but notwithstanding recent spikes, the stock has done nothing to suggest it is ready to trend higher.  Today’s action is further proof in that direction… As the chart shows, MCP closed the regular session at $7.41… and the after market session at $6.47 based on the market’s reaction to the company’s numbers.  It has remained well below the 200 EMA and until that changes, there is no reason to be anything other than on the proverbial sidelines.

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