Lets run through the ag chem stocks and see what we can find. (July 09, 2014)
I want to take a quick look at Potash ( NYSE:POT ) here. First of all the stock’s weak, today down almost 2 percent; then you look at Intrepid Potash ( NYSE:IPI ) that’s down too, CF ( NYSE:CF ) just kind of trending sideways, Terra Nitrogen ( NYSE:TNH ), that is also not particularly good, you look at Mosaic ( NYSE:MOS ), maybe off the 200-day moving average, but that’s not really saying much, Monsanto ( NYSE:MON ), that looks nice.
So we look through these; we see Potash ( NYSE:POT ) and then we’ve also found Monsanto ( NYSE:MON ). Okay, well Monsanto ( NYSE:MON ) is a little extended, you can be buying it right here, but you’ve got this area, right down here, that should be kind of support, so you’d really have to keep your stop clear down here in order to trade this right.
Now, compare that with Potash ( NYSE:POT ), you’ve got to like POT, because you don’t have to connect the lows precisely, but let’s just look at the 50-day moving average, this is really what’s working here, pullback, pullback, pullback, and then finally another pullback. I would take this over the other one any day because I can keep a really, really tight stop just below 36.31, maybe just below 36.00, like literally 35.95, so you’re risking less than $1.00 to buy a strong stock after a pullback. Just wait and listen to me I’m giving you pearls, just wait for the stock to start breaking back out above the high here of 36.93. We want to make sure that the stock’s bouncing as opposed to just falling out of bed here.
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