Do yourself a favor...

Added-Important-at Bottom






Conquer the Crash: You Can Survive and Prosper in a Deflationary Depression
Robert Prechter Jr.

I highly recommend that you read this book. It is excellent and it is amazing how much of it has already come true. Protect yourself! I am in this Fri evening and I have re-read parts of this book. I bought it used earlier this fall at Amazon for 10 bucks. Really. I plan to give a copy to my friends. Easy read. Excellent for investing ideas and understanding... and equally good just for learning how to protect yourself for what is coming. This book was written when housing prices were rising and everything was looking great... those who understood the principles of this book a year ago or two years ago or longer had the insight that few have had. The insight that still few have now. Up to you of course but...
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The bear market rally appears to be in swing... especially if it the RSI goes above 50 and we stay in the upper Bollinger Band on the major indices. This may last for a while. However, it does not change the underlying issues and, while I am more bullish on the stock market than I have been for a while, at least in the short-term, I am more bearish than ever on the long-term health of the economy. We haven't seen it or felt it yet. It's coming. On this post while the market was going up, I warned of the calm before the storm in the stock market. Now I am saying to protect yourself from the economic fallout. Also, the stock market has not bottomed in my opinion. Just another bear market rally.

Best,
Jon


May the above provide REVELATIONS... speaking of which... this is really one of my favorite songs of all time. One of the very best songs of the 80s for sure.




PS: I have never been wrong on the fundamentals of POT. Just wrong on the idea that fundamentals necessarily correlate with stock price. I have operated successfuly in in the past on that assumption but this market has taught me how the stock market really works. And for that I thank a great company like POT and a terrible market on the long side like this one. Fundamentals are only one indicator of demand for stocks... in this environment the other indicators, such as the declining markets, charts, moving averages, etc. have been altogether more powerful than fundamentals. These indicators will not always align against fundamentals... that is to say that the poor fundamentals of the market and of other commodities will improve and/or disassociate themselves more from the charts of POT if history is a guide. This is a great company. The stock is cheap and the market is gaining some short term momentum. Now is a great time to be bullish in my opinion... though always with risk management in place.

Here are some nice articles
Potash prices remain high and long term outlook
(note that 2/3 of revenue comes from Nitrogen and Phosphorous as of now so next year may see some slowdown in earnings even if potash prices stay high)

A bullish case for Potash as prices stay high


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Added
The significance of moving across RSI 50 and into the Upper Bollinger Band is very important for maintaining a rally. I wrote above that I was more Bullish short-term, especially if we move above RSI 50 and the upper Bollinger Band. This market can change on a dime and these, along with 50/200 moving averages, have been very reliable areas of support/res. The market decided that we would not today... bringing question the sustainability of this rally for sure. There's no continued rally unless significant indicators/levels hold.