Wednesday, August 13, 2008

Traders Must Go by Intuition

From thestreet.com 8/13/08

Last Sunday, during a ritual morning run, I remember feeling a hint of a breeze that seemed more emphatic than usual. It wasn't obvious, but it was enough to elicit my brain to think, "Hey, maybe there is a change in the weather coming."
When I returned from the run, my neighbor mentioned that she thought the weather was turning; she could "feel it." We intuitively spot slight changes in the weather, consciously or not.
In a column that I wrote on June 11, I talked about a trader's intuition about trading activity in stocks of agricultural companies. Until that day, these stocks had been on a tear.
Shares of Potash (POT - Cramer's Take - Stockpickr) had surged from $105 in January to $229 that day. Bunge sat at $122, Monsanto was trading $140 and Deere topped out at $82 per share........

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