My thoughts in reply to a question posted by @ixtlanian in the trading room:
Q: Hi Randy, POT fell sharply today on earnings report, but just to the levels at which you last recommended a re-entry. MOS fell sharply as well, likely in unison. MOS reports earnings on Aug. 02. What would be your strategy now regarding these long trade ideas? Good re-entry point again? Wait for MOS earnings?
R: Your thoughts mirror mine. I did see the move in POT yesterday & also checked MOS to see if it fell in sympathy, which it did to a lesser extent. POT hit & held the bottom of that symmetrical triangle like a champ & one could certainly add to or initiate a position on that support level. However, with MOS on deck to report earnings next week, another worse-than-expected report or forward guidance could be a one-two punch to the fertilizer stocks. Probably best to wait to MOS earnings is out of the way as I still view these two as long-term trades that are likely pounding out a basing pattern although a downside break & continued move below the recent lows still can’t be ruled out as the long-term (weekly) charts look like that is still very much a possibility. Stops for the POT active Growth & Income Trade remain on a daily close below 15.40 as per the previous trade update.