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: The rare earth trade is on today, with Molycorp (NYSE: MCP) rising 10% and leading the sector.

So what: Rare Element Resources (AMEX: REE) and China Shen Zhou Mining & Resources (AMEX: SHZ) both followed Molycorp higher as traders placed bets on rare earth miners during this slow trading week. Even companies on the outskirts of the rare earth trade are benefiting, with Avalon Rare Metals (AMEX: AVL) jumping 28% without any big news.

Now what: Rare elements have been on a long run higher, but this one looks a little suspicious to me. There isn't any real news from the sector, and with many investors taking the week off, Foolish investors would be wise to skip today's jump and wait for the market to settle down. The rare element business is still worth investing in long-term,  but this move is one I'm going to have to sit out.

Interested in more info on Molycorp? Add it to your watchlist.

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 Motley Fool CAPS picks at TMFFlushDraw.

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