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Commodities

I told Chuck last night that I was a bit worried for retail traders "playing" the commodity run.  Commodities are a tricky play, even for those who specialize in them.  Commodities are most likely a good buy and hold, but if you don’t time them properly they can hurt you.  Many are now buying agriculture and oil related stocks.  I’m not saying don’t do that, not at all.  Just watch your charts carefully and keep a stop-loss or trailing stop-loss to protect yourself.  If the whole market goes down, the commodity stocks will lose, too.  So if you are buying to hold, remember you will have to weather that volatility.  And then there is the unexpected news that can turn these stocks on a dime.  For instance, POT (Potash) is vulnerable due to negative talk on potash pricing, after a report that a  Russian producer is working with the government to increase production.