Just look at chart of Monsanto's price action for the past 6 months or so and you can see that it's been relentlessly sold..fortunately, I had a little bit of that action. Taken to the woodshed would be a good way to describe the beating that MON took. Well this week, it put in a potential reversal. Monsanto was up over 7% alone today and it registered a Bullish U-Turn on the weekly chart:
It will be interesting to see how this one plays out as this stock could rally a bit simply because of how far it has dropped recently. Short covering is undoubtedly gonna be fuel for the fire..gotta love a good old fashioned short squeeze.
As for the market in general, I'm seeing short term bullishness. Nothing worth getting too excited for yet, but there is potential. Here's a chart of the TLT Oscillator with the SPY plotted over it:
As you can see from the chart, there have been 2 successive positive readings, which is a bullish sign but not bullish enough to go fully long. The 5 day moving average is still negative which tells me that any buy signals right now have a high chance of being a whip saw because we are still in a downtrend. However, all bull moves have to start somewhere and this one could be a bigger bull move..we have to be open to possibilities, especially if they don't seem likely to happen. So for now, there's a slight bullish bias for the next week or so but I'll be keeping my eyes out for short signals as down is still the path of least resistance.
Hope everyone had a great week.
TLT
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