Sold DOW Chemicals

Sold my ~4% position in Dow Chemical (Ticker DOW), which had appreciated about 20% in the 3+ months I have owned it. The stock has been bouncing around $34 for most of February after running up in January, suggesting to me that it has peaked out. The consensus analyst estimate in 2013 assumes a 25% EPS growth rate, which I believe is quite aggressive should my Sagflation theme play-out of deflationary pressure. Furthermore, with excess capital in the economy and growing consumer debt, I believe demand may slow for large segments of the company. Finally, about 1/3 of revenue comes from Europe, to which I would prefer to lower my exposure. The P/E on the consensus 2012 EPS estimate is about 12x and the dividend yield is around 3%, both reasonable in my mind. I just believe the company may face stronger headwinds going forward.