Wednesday, April 16, 2008

Bookkeeping: Taking some Fertilizer Profits

While I believe the fundamentals do support this move, the charts for the fertilizer stocks are now reaching parabolic stage, after massive moves last week [71 Stocks Returning 7%+ Last Week] so I am going to continue to reduce my exposure and await a pullback (let me emphasize many traders on Wall Street buy charts like this, not SELL - they love buying 52 week highs so I am taking a contrary stance). These moves in Potash (POT) and Mosaic (MOS) and CF Industries (CF) have been breathtaking (along with another 4-5 fertilizer stocks I follow which I do not have in the portfolio). I am cutting back on all 3. That doesn't mean they cannot go up another 30% straight from here. It is just getting a bit too hot and heavy for my taste and I can see a line of lemmings about 7 miles long to pile into these names at this point. Potash does report next week...

My Ultrashort Basic Materials (SMN) "Insurance" is whacking the portfolio today but as I said when I bought it... if its hurting me, that means the rest of my portfolio should be doing well.

Long all names mentioned in fund; long Mosiac, Ultrashort Basic Materials in personal account

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012