RE: WTFSector correction, analysts lowering expectations, profit taking, strike, etc. July 15 MM moved out of gold to financials - BNS bottomed and G hit 52 week high same day. Coal getting beat up as well.
Another opinion - from Trending 1-2-3 news letter.
The fourth short I’m recommending hasn’t yet broken out of a pattern, but will likely turn out to be a head and shoulders top. Potash (POT) is a stock that has the best risk reward from the downside perspective—by contrast, X, EOG and APA are “safe” since they’ve already broken down and out of their respective patterns. Although I’ve received no confirmation that POT has officially broken down from its pattern, we played the back-test of its bearish divergence and made a 2% profit. My aim is to get us in on the short-side from the back end because if and when POT does diverge, it has the best price down-to-target reward.
What’s my rationale for this play? Simply put, I anticipate that POT will follow other commodities like Ultra Petroleum Corp. (UPL), which waterfalled from its recent highs.