The fertilizer stocks, including MOS, AGU, and POT all had pocket pivot volume signatures as they reversed around their 50-day moving averages today. We can see an example of this in the daily chart of MOS, below. The question is whether these are buyable. Given the steepness of the prior decline they would not necessarily be optimal, but in the stock market you can try and buy anything as long as you have a clear stop in mind in order to manage risk. If one were to try and buy MOS, for example, right here, then it would make sense to use the 50-dma as a reference for a stop, at the very least. It may, however, be too soon to try and buy a pocket pivot volume signature here as we tend to like to see stocks put in a little sideways work before reversing with a pocket pivot after a sharp, volume sell-off. In the MOS example, the 50-dma is at 77.67, less than 5% from today's closing price of 81.31, so theoretically is within a reasonable range.
Chart courtesy of HighGrowthStock Investor (www.highgrowthstock.com) copyright 2011, used by permission.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2018 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.