Click chart to enlargeMOS has returned to the center of its channel, and CF has reached the 2/3 mark of its channel. We did some initial buying back into the Ag space this morning. We now have 35% of our desired position, reflecting the approx location of these names relative to their channels. POT still remains too lofty, so we haven't pulled the trigger on it yet. If these stocks continue to sell off, we will be adding more later in the day. POT's earnings report this morning was strong. The selloff is not based on its report, it's simply based on where the stock was trading ahead of it... very overbought.
Of course we remain hedged with SMN and will be adding more if we do any further buying.
In a totally unrelated note, LDK has broken the first of its supports today in the 30.6 area. The next support to watch is a close of the gap, which would require for it to move below 30. It's close today is what will decide if it's broken these levels. At this point, it's really a news driven stock, not a chart that really lends itself to technicals. On that note, LDK reports on 5-12.
2 comments:
I am long SMN at the moment. Will start selling off once it hits 35s (?).
MOS def. looks a small decent opening position here. It is in its 38% retracement now. I am wondering if it would do a 50%, near 117 sometime soon. Will add a tiny portion of MOS nevertheless.
--clarke
These are definitely names you want to scale into (rather than buy all at once). Don't forget, CF reports after the bell.
It would be nice to get these stocks back into the lower part of their channels. We'd just keep adding because the long term fundamentals are still strong.
We're showing SMN at 1/4 of the way up its channel, after spending some time below it. Still has room to run. Center of channel is 36.
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