Yesterday it was the financials and real estate, and today the hot sector was agriculture. Great move if you caught it. Now the million dollar question is whether this move was due to short covering or the start of a reversal that will resume the sector uptrend. More to the point, should we hitch on for a ride, short or just stand back and watch.
There are too many “ifs” to make a convincing long or short argument. The longs can say that most stocks have remounted the 50 day moving average and still remain in a long term uptrend. However, bears can point to volume and short covering.
That’s why I don’t plan to make any trades in this sector. However, if the stocks breakout to new highs, I will likely enter. And if they break down below the 50 day moving average, we will have a short signal.
I was going to post charts of my favorite Ag plays, including MON, CF, AGU and TRA, but there is no need to post more than one. They all look almost exacly the same.
Paul J Singh 
An inexpensive AG play is CAGC.
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