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Monday, August 2, 2010

Alexco Resource (AMEX:AXU), Mines Management (AMEX:MGN) Rise as Metals Price Move Up

Metals miners enjoyed a great day today, as a number of precious metals rose on an increased positive outlook by investors, even though many pointers are out there showing there's a lot of risk.

Even today's confirmation China is continuing to cool off their economy was pretty much shrugged off by investors, so you know emotion is ruling the market at this time. After all, if investors aren't concerned over China slowing down, they're looking in the wrong place.

News that Europe was allegedly improving in a non-story. That's the narrative the mainstream media is carrying now, and that probably won't change, even though the region remains under extraordinary stress.

For smaller miners like Alexco Resource (AMEX:AXU) and Mines Management (AMEX:MGN) though, they can move up nicely in investing environments like this, and did, with both of them moving up in conjunction with metals prices.

Alexco traded at $3.19 at the end of the day, gaining $0.11, or 3.57 percent. Trading volume was less than half the 3-month average, pointing to large caps being on the radar of traders at this time. Even so, those holding shares in the company enjoyed a nice move.

Mines Management (AMEX:MGN) made an even bigger move, as measured by percentages, ending the trading session at $1.62, a gain of $0.07, or 4.52 percent. Trading volume was also down for Mines Management as it was for Alexco.

As long as emotion and not facts rule the market, companies like these could move up nicely, although we know they can also come down just as fast when the other side of the picture is focused on.

The question is how long with the optimism remain and commodity prices continue to rise.

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