Ever since I sold out of Mosaic (MOS) last week, I have been wanting to apply the money into Potash (POT) to keep my fertilizer/agriculture exposure constant - if you remember, the return of "herd trading" was back in commodities; so I didn't see a reason to own two names in a sector when 1 will do. By remaining patient, today we get our chance as the (cough) imminent global growth rebound thesis is being sandblasted. I can only assume the Baltic Dry Index of shipping felt 0.000000002% today ... or oil is down.
Potash is down 10% today and has fallen back to its 50 day moving average of $75 so my order executed just above that. This drives up our exposure from 0.7% of portfolio to 1.4% - again all I really am doing here is a pairs trade of sort - I sold out of one name and rolled into another (but I was able to buy the "other" 10%+ lower). I am willing to purchase here, but if we begin to break down to say upper $60s I'll cut back exposure as I believe this "global growth is back because a stupid shipping index is up 2% after falling 90%" is complete bunk.
Further, Monsanto (MON) is coming into range - we've been waiting for this gap to fill, and a buck more to the downside and my limit order should hit.
My limit order here is around $77 so if it hits I will just edit this entry - again I'd like to stress the potential for some losses is far higher here on short term buys then what we've enjoyed the past 7-8 weeks. So I'm looking more towards things I want to keep in the portfolio for the longer run when they pull back.
EDIT 3:45 PM: Monsanto limit order hit
Are people beginning to doubt the veracity of SuperObama being able to reignite growth with his magic wand?
Long Potash in fund; no personal position
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