Rare Earths Again

VanEck Rare Earth (REMX) has a chunk of China exposure, naturally. The companies best positioned to profit from an export ban or export quotas are Western companies that will sell into the global spot market. LYSCF is high risk here, the potential downside move equals the upside, risk is a move down to $1.00 or up to $2 resistance. If it were to climb back to $2.00, another breakout becomes possible.

You may also want to look into REMX's holdings if capital starts flowing into REMX. The fund is relatively concentrated because this is a small space. REMX is a big funnel for moving cash into relatively small stocks. REMX has $140 million under management, but top holdings around 5 percent of assets are in the range of $1 to $3 billion market caps. I don't think there's a lot of upside outside of a China trade war though, at least not in the short-term.

Lynas spiked on Monday because Australia's Lynas, Blue Line plan Texas rare earths facility
Rare earths producer Lynas Corp said on Monday it has signed a memorandum of understanding with Texas-based Blue Line Corp to set up a rare earths separation facility in the United States.

The move comes as the United States, which is highly reliant on the world's biggest producer China for rare earths, is prioritising the sourcing of its own strategic minerals used in everything from consumer electronics to military equipment.

The deal has been struck as Lynas faces regulatory issues at its processing plant in Malaysia, and fends off a $1.1 billion takeover offer from Australian retail-to-chemicals conglomerate Wesfarmers Ltd

Chief executive officer Amanda Lacaze told Reuters in a phone interview that the U.S. venture was a specific market opportunity and would complement its operations in Malaysia.

The venture would allow Lynas to close a "critical" supply chain gap for U.S. manufacturers.

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