Weekly Stock Pick

Submitted By Michael Michaud

The Market Week Ahead

Options expiration is coming up next week, and still many of not most traders are short the Dollar currently. If those Dollar shorts start to cover and or reverse for whatever reason, there should be more volatility coming into all the markets.

Most Important Economic Data Reports this Week

Monday: USA Advance Retail Sales

Wednesday: Bank of England Meeting Minutes, USA Consumer Price Index

Friday: Bank of Japan Interest Rate Decision

My Stock Pick This Week

Is a buy long position in the biggest producer of agriculture products in the world. Agriculture is one of my favorite sectors long term. I’m torn right now on making this buy long call on this stock, as I think that stocks and commodities are headed lower near term before going much higher long term. Nonetheless, this company has a lot of positives going for it fundamentally that I think might propel it higher at least long term, and hopefully near term. In case not, stick to stop-loss, and buy back in it later at lower prices.

Buy Long Potash – Ticker POT

Buy Entry: On Breakout of 104.85 to 107.67

Stop-Loss: 102.30

Take Profit Areas: 118.04 to 121.22, Hold Longer Term with Trailing Take Profit Stop-Loss

Potash Company Profile

Potash Corporation of Saskatchewan Inc. engages in the production and sale of fertilizers, and related industrial and feed products in North America. The company manufactures and sells solid and liquid phosphate fertilizers; animal feed supplements; and industrial acid, which is used in food products and industrial processes. It also produces nitrogen fertilizers, as well as nitrogen feed and industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate, and nitric acid. Potash Corporation’s primary customers for fertilizer products include retailers, dealers, cooperatives, distributors, and other fertilizer producers. In addition, the company produces potash from six mines in Saskatchewan and one mine in New Brunswick. It sells purified phosphoric acid directly to consumers of the product. The company was founded in 1953 and is based in Saskatoon, Canada.

Click here to review and trial the Trading Software we used in determining our buy long position on POT.

Click the Potash Stock Chart for a larger view.