Thursday, February 7, 2008

Part II: Where is the money going?

When dollars are leaving the market these days, they're really leaving for a while. Still, there have been and will continue to be mini-rallies on the way to the bottom. There have been two sectors that have been outperforming the market significantly during these mini-rallies. These include agriculture and mining stocks.

Let's take a look at a few plays during the market's last mini-rally lasting January 22th-February 1st (The market was up 8% during this time):

Agriculture

Syngenta Ag (SYT): up 14%

Monsanto (MON): up 22%

John Deere (DE): up 24%

Potash Corporation of Saskatchewan (POT): up 38%


Mining

Aluminum Corporation of China (ACH): up 24%

Alcoa (AA): up 26%

Companhia Vale Do Rio Doce (RIO): up 32%

These companies aren't just going up with the market; they're pulling the market back up! If you want to be on board with winners during the mini-rallies, take some time to research these stocks. Again, the ability to predict the peaks and valleys in today's volatile market can not be understated in this volatile market. If you choose to enter the market at this time, make sure you're buying stocks at their lows and that you understand all risks involved. Do not make investing decisions solely based on the information provided to you on this site.

Tomorrow, we'll start a new segment called In Focus where Dollar Bill profiles in details the stocks he's been mentioning. If there are any stocks you would like to see profiled on this site, please let us know in the comments sections.

In play: Ultrashort Dow30 ProShares (DXD), the only stock I've recommended, is up almost 11% since last Friday. The Dow itself is down over 500 points. The time for profit taking is soon approaching, though.

Dollar Bill did not own any shares in any of the stocks he's mentioned at the time of publication.

No comments: