During times like this, it's important to think back to former high-fliers like POT and MOS. Remember those? There was a time that fertilizer stocks (of all things) were the hottest game in town.
You can click on the "Present" bar to see how things have changed.
My point is that as we're witnessing insanity in stocks like AZO, CAKE, DRI, EAT, and all the rest of them, all these momentum plays eventually meet their doom. The hard part, of course, is knowing when that doom arrives! Because a stock that has moved from $3 to $30 may seem ridiculous, but it could be just as ridiculous as $300 before it has topped out. Tilting at windmills can get extremely expensive.
There are enough patterns with safe, clear stops to provide opportunities for shorting. The past seven weeks have been very, very rough for the bears. There are a handful of stocks I still like on the long side, but on the whole each lunge higher is just making me more skeptical about the market's ability to hold itself up.
