It seems that the rest of the fertilizer companies who have been trading like 1999 Internet stocks are making tops today. Pot, above attempted a break out yesterday but today it sells below the breakout point of $86.74 with a double top forming. On a failed break out attempt usually what happens is that the price fails very fast to the next support line which is around $76 as the most recent buyer who positioned for the break out bail out and longer term holders are strategically take profits. I put a short on the stock today at $87.56 with a stop above 90 and so far so good. I will probably short some more on any intraday rally tomorrow.
MOS, also has the same pattern. Another failed break out.
2 comments:
good call on the ferts
i bought tnh at 100 and now in panic mode as it is 81. guessing will never see 100 here again even long term?
took out my money from pot a few days ago, watched it climb as market tanked but today it is coming down-do you see it hitting around 76 and do you think that could be a good entry or do you see it falling even much further down like tnh did?
thanks,
mike
Mike the market is possibly putting a major top at this juncture. We can get a correction the 10-15% type or we can get a bear market the 20-24% type. I would no mess around with pot at $76. You sold close to the top which is great. Just keep the cash
and wait. Even a leading stock in a general market correction can lose anywhere from 33-50% so the risks are high on pot even at 76.
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