Tuesday, June 24, 2008

Life After Ags (AGU; MON; MOS; POT)

From Minyanville:
Where did that come from? I’m talking about that whiff of spunk that swept through the market a couple of hours ago. Was the move off the lows in the same genus as the oversold bounce and jellyfish?

In other words, is this the real deal: Does this move have a backbone? Breadth is grudgingly changing but declining issues continue to dwarf advancers. I do sense an attempt at rotation as hot niches of the market continue to gyrate. Agricultural stocks are one that has begun to struggle a little. Even an increase in the share price target of Potash (POT) hasn’t stopped it from getting hit today. It’s the same across the board with CF Industries (CF), Monsanto (MON) and Agrium (AGU) all giving back a few points. That in of itself isn’t a big deal, especially with high beta stocks, but something else is developing that raises yellow flags....MORE