Potash Corp.

Commodities and then utilities are the last to top in a bull market. If we think this bull market is going to top (or already did!), it will not end without commodities and their stocks not topping. We see a long range consolidation in the ag names. I am taking POT as a classical example here but you can pick the basket MOO. I expect POT to breakout soon. In simple terms, buy here and have a stop 7% below. Or buy the breakout above 48$, if you are conservative.

I also think that this bull market has not topped, more of that later in the next post. Very soon though, ok na?

Eur/USD update

Euro/USD topped here in the short term. But, the currency pair formed a positive divergence with MACD in t the last few months. Buy the currency on a pullback, I believe we will see a powerful rally in the next few months. The rally may take Euro as far as 1.4.

Sell short if SPX goes below the trendline. The market is following the path as mentioned in the last few blogposts.

AAPL

The chart below is all you need to know. I don't see a breakout happening for the stock. I am sure AAPL is a great company but it's market cap is 1/2 a trillion $. That is all you need to know. Apple is an awesome company but the awesomeness won't always translate into the $ for stock holders. I don't know about long term, but short term this ticker topped right here. Use a 4% stop, just in case this is a break out.

Walmart Inc.

The world's biggest retailer hasn't seen its stock grow in 13 years. IBM also was in a 12 year consolidation before it broke out in 2010. Last year IBM was up by 25%. I see such gains here for WMT as well. EPS has been growing, dividend is on the constant increase every year, what is not to like about WMT. The Indian govt. postponed its plans to allow International retail markets into their markets. But, with this technical breakout shaping out on the charts, any good news in that front would only be an added bonus. With a 2.5% dividend payment at this price level, I would buy any dips for the long term. A 8% stop from this level is good, stops are mandatory in investing no matter what.