Thompson Creek Metals Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Thompson Creek Metals (NYSE: TC  ) shares jumped 13% on Friday.

So What: A new ETF called Market Vectors Rare Earth/Strategic Metals (NYSE: REMX  ) was launched yesterday and a popular launch may be driving up Thompson Creek. Volume is more than four times normal daily volume only three and a half hours into trading.

Now What: ETF launches can cause some crazy moves given the creation unit structure to buy and sell blocks of shares. That combined with China's rare earth metals restrictions have created high demand for companies with exposure to such metals. But without any news from the company I'm inclined to pass on this jump and look for a pullback next week.

Interested in more info on Thompson Creek Metals? Add it to your watchlist here by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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