Tuesday, May 3, 2011


Mosaic is making a run for the bottom a very long term channel bottom.  This presents several options for those that are more focused as traders. 

15 MIN - 20 Day Chart on MOS - NASTY

Where one sees blood, other see a purchasing opportunity, and it is always a good idea to look for the trade that would be on the opposite side of yours if you took a trade. Obviously one that has a bias toward going long can attempt to go long near the $71.55 area, setting a stop just below around $69.00. This provides an opportunity to catch a bounce with little risk. Personally, with all commodities looking pretty weak and entering into May (historically one of the crummiest months for stocks), I am not in this camp at all.

The good trade has been to be short MOS, and I have enjoyed that position for several days.  As we near this significant area of support, I am on high alert because I do not want to give up my gains.  As I examine this trade I have now entered in stops at $73.50 to prevent me from giving up a large portion of these great profits.  On the flipside, if the $71.55 area breaks down I am looking for a potential move to $65.00

Long term 3 Yr Weekly Channel is close to being broken. -

Daily View - 200 Day

As always, be careful.