Fertilizer stocks out of favor

Discussion in 'Stocks' started by NoDoji, Jul 24, 2008.

  1. NoDoji

    NoDoji

    I just saw a streaming news article about fertilizer stocks being out of favor, as if some kind of bubble has burst and everyone let's run for the hills. These talking heads are supposed be professionals, aren't they?

    If you look at the charts for POT, CF, MOS, AGU, etc. you'll see that they have been in an uptrend for 3+ years with higher highs and higher lows the whole way.

    It's not as if we're going to replace food with something different, the way we replace our SUVs with Priuses.

    Automakers and banks "fell out of favor". Fertilizer stocks are taking a breather before the next surge. Enjoy the breakout!
     
  2. Am short K+S , Bloomberg code: SDF, they are dead, kinda reminds of what happened to Nickel recently :D



    P.S. My analysis, thoughts and trading thesis for SDF may be wrong , but as a mere mortal l am willing to be wrong and to cut my loss :cool:
     
  3. Hmm.. I'd be a little cautious here :)

    It may rebound a bit, but in a bear market this momo play have plenty of juicy meat that can be eaten. Look at the sell volume today.
     
  4. We're in a bear market. Financials are pretty much done as far as the fat money. Now the momentum stocks will get hit. Nothing should survive this market. The leaders to the downside now will be all the high fliers of the last 6 months.

    You're seeing market rotation.
     
  5. NoDoji

    NoDoji

    Agreed, and I think they may test 200-day SMA's, but a bounce off that will make you rich and day trading these babies has been like an ATM machine for me.
     
  6. nkhoi

    nkhoi Moderator

    Stage 6 is a period in which business activity is in decline and entering into recession. Bonds, stocks and commodities all begin turning downward.
    http://www.marketoracle.co.uk/Article1908.html

    the fertilizer sector follows the commodity sector.
     
  7. S2007S

    S2007S


    Those stocks are all in bubble land, I said this when POT was at 230+ and will say it again, all these stocks are in bubble land along with commodities. You cannot have commodities rising in a slowing economy. Not only is the US in a recession, but the rest of the world is seeing a slowdown as well. Stay away from these stocks, they may bounce higher in the short term but I see no reason to own these while the economy goes deeper into a recession.
     
  8. GGSAE

    GGSAE

    I don't mind if these guys all come down a bit, less capital i'm using. :)
     
  9. GGSAE

    GGSAE

    I'm sure you don't even trade so i don't know why i'm bothering with this reply...but when the the price of products these companies are selling continues to increase per unit, leading to higher and higher revenues and earnings, these companies will not slow down and are definitely not in a bubble. Only until they start missing earnings can that case be made....you want to talk about over-valued stocks, look to the coals...
     
  10. S2007S

    S2007S


    You have that right, I dont trade those bubble stocks like you do, they are in a bubble and will come down just like all stocks in bubble land do.......

    :p :p :p :p
     
    #10     Jul 25, 2008