Hamilton's E-Wave Analysis

POT update

pot jan 25 2016 b

Potash is down another $9 or so since our last blog. We are not yet at an ideal target but we would not want to outstay our welcome either. Here or at about $18 a neutral stance is warranted even if we believe the stock might drop all the way to $10 or even lower. All the requirements of a large a-b-c and a 5-wave sequence in that c wave have been met. Even the 5th wave, shown on the right has the right number of subdivisions (but is not yet oversold).

Farm income has dropped to about 55% of what it was in 2013. Potash is bought when there is money, not when it is needed, so there is no reason to get bullish.