Lesson learned

1. This morning I was furious about the losses in LEH since I bought it at 29 on Monday, and I sold LEH at 25.3, and then it bounced back to 26.5, before it closed at 23.75.
2. And I added AGU at 99.50, a new record, it closed at 100.13.
3. So the result is in: a new low usually will lead to new record low, until it turns.
4. A new high will lead to a new high, until it turns.
5. From my perspective, I will never buy a new record low, until it turns.
6. I will keep buying new record high, until it turns.
7. Lessons learned.
8. My DBA and DAG are doing great today, MOO and KOL, not so good. MOS, POT and AGU are all doing great today.
9. Next: monitor these and take profit when I think it turns. Until then, keep them.
10. I think DBA can easily break the record high of 43.5 set early this year, the rain in corn belt will push up corn, soybean. In fact, corn, soybean and wheat all had limit up today, that's a good sign that it will continue to go up tomorrow.
    
11. Trading for over 5 years, now I think I finally agree with the "buy new highs" and "sell new lows" rule. I always did the opposite before.
12. I think agriculture commodities will be the best vehicle to fight inflation in the years to come, and fertilizer companies (POT,MOS and AGU) are the best stock group to own for the next few years.
13. The risk is government intervention, but I think U.S. government will more likely to intervene oil price than corn, since U.S. benefits from agriculture inflation (U.S. is the biggest exporter of corn and soybean in the world, for example), while on the other hand, U.S. is the biggest importer of oil.
14. Coal should be a good buy too. I have KOL in place and will add more when it pulls back.