The commodities that I’ve been watching recently have been taking a beating recently and I’m looking to take advantage of that, especially since (some of) the professionals say to watch/buy (MOO) , (MON), & (POT).
I guess my question is where do you become a buyer? on the way down??? Or on the way up? Where do you find that it is a safe place to jump in. I believe finding the “absolute low” is near impossible.
What are several strategies to use for these predicted champions that are seemingly struggling?
January 18th, 2008 at 12:08 pm
I think the official position here is that the fertilizer stocks are about to blow up. They have run up huge in the last few years and a lot of the price increase is due to popularity of alternative energy with the press. I think it’s a bad idea to get into these stocks at this point, I see nothing but red for them, however that is just my personal opinion. To answer your second question I would not buy on the way down ever, I think the best approach is to wait for the uptrend. No one can accurately predict the absolute bottom and why would you want to get into the stock that hasn’t reached it yet. This morning you probably wished that you got back into these stocks at the close yesterday, however if you look at them now, you will see that they are taking a beating again. There was a good article on about fertilizer stocks in the WSJ on Wednesday.
Good Luck