The commodity related stocks have been ape raped. Is now the time to buy them?
Well, looking back on past dips, the answer is unequivocally yes. However, understanding the Fed’s desire to justify low interest rates, in order to help the banks, commodities need to have their comeuppance.
The following are on my commodity watch list:
FCX , Southern Copper Corporation (USA) [[PCU]] , Bucyrus International, Inc. [[BUCY]] , The Mosaic Company [[MOS]] , Potash Corp./Saskatchewan (USA) [[POT]] , CF Industries Holdings, Inc. [[CF]] , Monsanto Company [[MON]] , Agrium Inc. (USA) [[AGU]] , Transocean Inc. [[RIG]] , Ultra Petroleum Corp. [[UPL]] , Arena Resources, Inc. [[ARD]] , United States Steel Corporation [[X]] , Olympic Steel, Inc. [[ZEUS]] , Peabody Energy Corporation [[BTU]] and Cleveland-Cliffs Inc [[CLF]] .
Pretty bloody, eh?
Today’s decline makes me want to go drive out to some fucking farm and burn it down. I want to take a John Deere tractor and drive it into a sinkhole.
Nonetheless, it’s worth noting, my AGU position is minimal. But still, 8 fucking points in one day is ridiculous.
On the plus side, once again, are the banks. I cannot believe the resurgence in MBIA Inc. [[MBI]] and Ambac Financial Group, Inc. [[ABK]] . Also, shares of Wachovia Corporation [[WB]] are rounding off the intra-day lows and gaining strength.
Currently, my largest position is [[FXP]] . I am comfortable with it holding here, due to its short exposure in SNP , CNOOC Limited (ADR) [[CEO]] and PetroChina Company Limited (ADR) [[PTR]] .
Bottom line: This market is very tricky. Be careful not to bet big in any direction. The volatility reminds of a Pepsi can opener. You know that little metal thingy that pierces the can, allowing you to guzzle the bullshit liquids inside of it? Eventually, you keep moving the metal thingy back and forth it falls off.
Fuck it UPDATE: I am buying 500 share blocks of AGU here. I will be doing so, in big balled fashion, until the bell rings.
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Some thoughts on copper…
http://deadcatsbouncing.blogspot.com/2008/07/china-prepare-for-post-olympics-crisis.html
Rick Santelli summed it up well. It’s a reallocation trade.
Out of commodities into margin calls.
I’m buying a little of the bloodied stocks, FCX mainly. It’s always paid off in the past. But it gives me sweaty palms, no joke.
I still say “Fuck the Banks”… as I lay her battered, bleeding and ball-less.
Still bottom fishing TMS baybee! [don’t laugh f2ckers]
The time to bottom fish will be in late September. No one’s going to have any jobs or money to buy the wreckage at the side of the road.
i’ve been watching FCX all day. i think i may slip a small order in tomorrow at the open for $75.
How about TCB? I banked coin on my short earlier today…then reshorted it again when it went back up. Now the fuckwits are running it up.
Holly shit AGU is going to fucking zero at this speed.
Love TCB short here. I still have it on.
“Be careful not to bet big in any direction.”
“Fuck it UPDATE: I am buying 500 blocks of AGU here. I will be doing so, in big balled fashion, until the bell rings.”
Errrr…do as I say, not as I do, eh?
15,000 shares of AGU is a minimal position? Hats off!
Some common sense needed on this board. All this talk out of one side of the mouth about buying AG and Energy, while the other side of the mouth is talking up an economic nightmare on the horizon – just makes no sense what so ever. Your mother’s drop your asses on a concrete floor at birth? Economy tanks, commodities and energy tank. Common sense.
comeuppance… that’s a big word.
Fly,
WTF. Comeuppance? Thats some Shakespeare shit your lining up here. Still, liked your logic.
-Phil