The Wrap 2/15/11

{+++}A deluge of data failed to inspire buyers to build on the prior session’s two-year closing high. Instead, the major equity averages fell modestly.

Tomorrow morning before the open, three economic reports are scheduled to be released: 1) MBA Mortgage Purchase Index (Consensus NA), 2) Housing starts (Consensus 540K) and Building permits (Consensus 575K) and 3) PPI (Consensus 0.7%) and Core PPI (Consensus 0.2%).

Tomorrow before the open look for the following companies to report: ANF, ALE, ARB, CBC, LSE, CBZ, XEC, CMCSA, DF, DE, DVN, DCI, NOP, EEFT, FE, FSRV, FNDT, GENC, HPY, ICON, JMP, KOP, LCAV, LOJN, MSO, NEWS, NOR, OMX, OWW, ORBK, OC, PAG, PFCB, ROC, ELOS, TLM, MDCO, VSI, and WCG.

Today was a chop fest, the fertilizer/agriculture stocks got torched as the momentum guys decided it was time to take some profits. Oil sold off a bit, the actual commodity (oil) in my opinion is getting oversold, if I traded crude futures I would start long positions.

Don’t be in a mad rush to but the ag. stocks, these sell offs can last a few days. I saw some of you knife catchers today on the chat room, that’s OK, but ease in so you don’t get hurt. Look, agriculture and commodities are going much higher, it’s my favorite group. we are in a massive bull market in the space, but you have to be able to play the pullbacks. We sold MOS, CF and POT with nice profits in the last week, everyone else is getting hit with a waffle iron.

Cotton is up 150%, the highest rise since the Civil War, wheat prices are up 72%, corn prices are up over 90% and copper is up over 45%. The Fed is behind all of this and is a Master Enabler. The dips can be tough ( and should be bought, just pick your spots, I will try and help), but it all goes higher.

The planet is somehow, someway pegged to the greenback and as it deteriorates it only pushes price higher. Metals are moving, even some bizzarro metals like uranium are popping? I frankly haven’t a clue what they use uranium for, but I see the charts and the volume tells me they want these names. Can they correct? Of course. Is the trend up on some of this stuff? Absolutely yes. I care nary a wit on the “why” of it.

We took $6 out of OXY today, about $8 out of CF, $6 out of POT and $5 out of MOS in the last few trading days.

I study more macro issues more than any “fundamental” guy I know, but the charts always tell the tale, so lets continue to pick up what the market is putting down. Caution always.

No new names tonight guys, please check the P&L for any changes or adjusted stops.

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