• Chart of the Day: Potash Corp. of Saskatchewan (POT)

    by  • March 21, 2013 2:28 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of Potash Corp. of Saskatchewan (POT) which produces and sells fertilizers and related industrial and feed products primarily in the United States and Canada.

    Ticker:  Potash Corp. of Saskatchewan (POT)

    Strategy:  Short trade

    What I Am Looking At:

    • Underperforming the broader market, down 12 percent year-over-year
    • Shares have been oscillating around the 0 percent year-to-date level, currently down nearly 3 percent YTD
    • Round number $40 level has shown great significance over the years which also coincides with $40.25, half the all-time high
    • 80-month moving average (purple line on chart) also coincides at the current level, which has acted as support in the past
    • A clean break of the mentioned technical levels could result in a quick move downwards
    • Peak call open interest at the 40-strike could pressure shares lower on unwind situation
    • Nearly twice as many calls than puts have been bought to open during the past 50 days
    • Short interest remains low, only 1.2 percent of the float
    • 11 out of 21 analysts rate the shares a “buy”
    • Quarterly earnings growth -38 percent (YOY)
    • Next earnings release April 25th, unconfirmed

     

     



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    About

    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.

    http://www.schaeffersresearch.com/

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