Gunslinger

4 Stocks in Trouble

This was a good technical call, but horrible stock picks (MOS and CF). No way are the Ags (Ferts) going to tank, or even lag over anything resembling medium-term or longer. The market is not going to let these prices go back to 2007 levels. These companies are going to make up the ground they lost recently, and the ones that look the worst technically are the ones that have the most upside to gain back. You're only going to find yourself selling at the lows and hating yourself. Hell, not only did MOS and CF rip back up over their 50DMA today, they closed over their 20EMA!

The market darlings (ferts, coal, steel, oil/gas services, drybulk, et al) have serious fundamentals behind them, and no prospects of slowing. This isn't like trading technicals on the INDU, SPX, QQQQ, DBA, DBC, etc.

FWIW, buying the hot stocks on dips to/near their 20EMAs has been an unreal technical trading strategy this year. IMO, the trade now is buying calls on the above situation. The gains and accuracy % have been unreal. I could list the major watch names if anyone expressed interest (probably similar to the author's).