Tuesday, January 17, 2012

Evening Thread

Markets gapped up and got weaker after the European close. China numbers overnight were partially to blame for the morning excitement. WHile we closed off the lows of the day, we were unable to close above 1300 on the SP500.

TN favorite copper has been the talk of some commentators.

Afternoon Thread

Lunch time!!!

Morning Thread

Time for some POT

No, it's not in the winner's circle ... more like the penalty box but I think the bottom is in.  Everyday the world population increases and everyone has to eat.  Emerging markets are growth areas for higher calorie diets and that requires fertilizer.  (Jerry Clower would make a killing.) 

The chart configuration tells the story.  This is a turnaround from a down trend.  The 20 day is under the 50 which is under the 200.  First to turn is the 20 (duh, it's math gator) and that's happened.  It will soon intersect the 50 and that could be blastoff time.  Any pullback to the 20 day is a great time to buy but I don't think that will happen.  Now that the stock has closed above the 50 day I think that will be strong support.

We have had 4 strong days in a row.  (Yes I see the red candle but I also see the stock traded down and then finished near the high of the day.)  Volume has also been increasing.  Bottom line: I think it's time and I will be looking to open a position.