With the market pushing all time highs and holding, it’s all about that sector rotation. Indexes can remain in chop mode while smart money shuffles their money around in customary fashion.
It seems that fertilizer stocks are on the menu on this particular day and possibly for the next few weeks, with Call buyers sweeping up $30 strike late December expiration on CF Industries.
As you can see from yearly chart above, these fertilizer stocks are some of the more beat down names similar to steel beginning of this year before the 400% bounce. For a long trade, technicals look good and you got some flow behind it. What more can you ask for?
I’m in the January $30 Calls while many members of the Steamroom have followed the call buyer on the last week of December $30 strike.
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