Agricultural
Caterpillar Symbol: CAT
http://www.cat.com/cda/layout?m=8703&x=7
Rationale: CAT is agriculture. It is the big machinery to move the world. CAT follows both agricultural and industrial development. We play it short/long, and puts and calls.
Guidance: Long-term subscribers bought this with us at 42.00 in March of 2008 and added to our position in October 2008. Our averaged cost is now 30.66. With the stock trading at 59.05, and dividend producing, traders should have sold at least 1/3 of their positions.
Use a 25% trailing stop loss, or a PNF stop loss at 42.00
Powershares DB Agricultural Fund ETF Symbol: DBA
http://dbfunds.db.com/dba/index.aspx
Rationale: This ETF mirrors agricultural/farm products well and we trade as both put and call.
Guidance: Not currently trading
Intrepid Potash Symbol: IPI
http://www.intrepidpotash.com/
Rationale: What Potash is: http://en.wikipedia.org/wiki/Potash
We play this both long term at times, and are new to trading to this position, replacing another Potash manufacturer.
Guidance: We bought IPI 7/19/08 at 26.00 and doubled our position near market bottoms at 18.00. Our average cost on IPI is 20.66. IPI has just passed a double top breakout on a PNF chart and we continue to hold.
Use a 20% trailing stop loss on IPI, or a PNF Stop at 27.00, to preserve profits.