Tuesday, August 10, 2010

MON Watch

Jim Cramer said the bullish things about the agritech giant Monsanto Co. (MON), and the price dropped on bear signals. So much for the Cramer effect.


Today's new bear-phase moves came on the Person's Proprietary Signal and the macd. The parabolic sar moved to bear phase on Monday.

MON has taken a three day breather from a rise beginning in early July that carried the price up 39.6%. The recent decline has been marked by slight volume declines each day.

The price remains just above the 20-day simple moving average and well above the 200-day exponential moving average, so this is hardly the onset of a downtrend as yet.

Bottom line: Like my spiritual brother Cramer, I'm also bullish on MON and consider a dip to be a chance to lay on shares as a mid- to long-term holding.

The stock was hit hard by the collapse of capitalist finance but began a sharp recovery in July.

It was a $145 stock at its peak and has returned to profitability after a few nasty quarters during the depths of the recession.

It's at the cutting edge of genetic engineering for the farm, and peace to all who dislike frankenfoods, genetic engineering is the future of farming. It's how you keep an awful lot of people from hunger amid the planet's used up land and declining water resources.

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Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.


  • psar - Parabolic Stop and Reverse
  • adx - Average Directional Index
  • pps - Person's Proprietary Signal
  • ma20 - 20-day moving average
  • macd - Moving Average Convergence-Divergence
  • sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

  • trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
  • adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
  • psar, pps, macd: green for bull mode, red for bear
  • sto: green for overbought, red for oversold, yellow for the neutral zone.

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