Saturday, May 02, 2009

Sector A: Ag-Chems

Over the weekend we're going to be posting up charts of some sectors that could show some decent trading opportunities come next week. Let's start with the Ag-Chem sector:


There's no ETF we love for this sector (not liquid enough) but MOO seems to be the best of the bunch.

Clear break-out on increased volume (not difficult though as stock normally trades thin so a bit of day-trader attention would get the volume spike) but has 200 SMA to deal with relatively soon.


Angle of ascent is a big part of the way we trade. Note the increased angles of ascent in AGU (versus the more flat nature of S&P 500 in April versus March). This means that there could be fast up-move coming in the stock. Possible top? Maybe, but before then there should be an excellent long opportunity, at least to the October gap area.


CF is the leader of the group; excellent price action but possibly needs a bit of rest ahead of the 200SMA (at least that is what would happen in a rational market :-)


MON messier than the rest but important enough to be mentioned -- could easily run to 88, especially if it rests for one day.

POT looking good under 92.



Stay Tuned for this evening's post, Sector B: Metals