I’ve been putting money to work as bullish evidence continues to build across the market.
One group that caught my attention this week is Rare Earth and Strategic Metals.
These companies produce critical materials used in EVs, semis, defense, and energy — all key pillars of modern industrial and technological growth.
What stands out is that the group is starting to move together, with multiple names breaking out as momentum broadens across the space.
When these stocks move, they tend to move fast. That makes them especially attractive in risk-on environments.
The VanEck Rare Earth ETF $REMX is a clean way to track the theme.
It’s now breaking through its 61.8% Fibonacci retracement and pushing toward its 2021 highs — a move that suggests a larger structural reversal may already be underway.
And when you start seeing breakouts at the ETF level, it usually means the underlying names are lining up as well.
One that stands out is MP Materials.
It’s one of the largest holdings in the ETF and a direct way to express this theme.
Right now, the stock is coiling just around former cycle highs, compressing between VWAPs anchored to its all-time lows and highs — what we call a pinch pattern.
This setup reflects a market where both long-term buyers and sellers are converging at the same level, tightening price action. When that tension builds, it often resolves with a sharp, directional move.
That’s why it’s one of my favorite patterns — you’re positioning ahead of expansion.
On top of that, MP carries about 18% short interest.
That simply means a meaningful portion of the float is betting against the stock. And if price starts moving higher, those shorts can get squeezed — forced to buy back shares to cover, which only adds fuel to the upside.
That’s what makes this setup even more interesting.
As long as we’re above 60, I like MP long with a target of 90.
Yesterday I bought common stock and added calls through Breakout Multiplier.
