The market closed slightly lower Tuesday, trading in a tight range after three consecutive gaps up. Headlines regarding the nuclear crisis in Japan and unrest in the Middle East have been driving the market action over the past few weeks, and although those issues are not resolved, investors are starting to more confidently pile back into stocks. The fact that market has held up well today could be a sign that we are poised to go higher, but it will be interesting to see how the S&P reacts at its converging 21 and 50-day moving averages.
The highlight from a sector standpoint was the rare earth group, which finally exploded after being out of play for the last few months. Comments from the Molycorp, Inc. (MCP) CEO that rare earth selling prices are higher than previously forecast boosted this speculative sector. Molycorp closed up 17.66%, Rare Earth Resources Ltd. (REE) up 24.08%, China Shen Zhou Mining & Resources Inc. (SHZ) up 28.74%, Avalon Rare Metals (AVL) up 13.20%.
For more market and stock commentary, watch the T3Live.com Daily Recap with Scott Redler below.
*DISCLOSURE: Scott Redler is long FCX, NYX, BIDU, BAC, SLV, GLD, LEI, F; Short SPY
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