DAD08

Agriculture: Are There Still Bulls in the Supermarket?

I do not agree with the fertilizer companies (AGU, POT, MOS, CF, SQM) being associated with commodities. This group should have nothing to do with how commodities trade- however it seems the market still groups the fertilizer companies with the commodity groups. What we are dealing with here is simple- SUPPLY and DEMAND.
I also must say- the group has NOT traded with a "nearly uninterrupted climb"-- There have been quite a few steep/sharp pullbacks which shake out short term players. It is important to note that each and every one of these pullbacks has been a tremendous opportunity to initiate a position or add to an existing postion- this is no different. Use this pullback to create a postion or add to an existing postion. MOS and CF report next week followed by AGU- I would bet we see a rotation back to what has worked in this market and an exit of the bear market bounce in financials.
Best of luck to all.
Disclosure- Long CF, SQM, AGU calls