6 Short Cover Rallies to Avoid at All Costs
These 6 recent comebacks are just beacons of false hope
Click to Enlarge Rare-earth darling Molycorp (NYSE:MCP) is close to a 50% return from its November lows as short sellers scrambled to cover their profitable positions.
This stock has fallen off of the cliff in 2012, declining 65% as demand for their products has dropped. Don’t expect to see the market drive prices much higher, though, as significant overhead resistance is in place at $8.82.
Don’t buy the pop here — I expect to see MCP trade back toward its lows of around $6 again.
Article printed from InvestorPlace Media, http://investorplace.com/2012/11/6-short-cover-rallies-to-avoid-at-all-costs/.
©2015 InvestorPlace Media, LLC