The fertilizer stocks have really been weak over the past two months. Monsanto Company (Public, NYSE:MON) has just been am absolute train wreck and The Mosaic Company (Public, NYSE:MOS) has also been pretty sorry. One stock I have been watching for a breakdown in sympathy is Potash Corp./Saskatchewan (USA) (Public, NYSE:POT). I have been short this stock a few times over the past couple of weeks and am currently short again via a put vertical spread. While POT has held up better than some of its peers, it hasn't exactly been a pillar of strength. POT failed on a breakout attempt in May off of a loose and sloppy base. POT is close to breaking down from a large double top which could have POT trading several points lower if it happened. However, it must be noted that POT is technically sitting on support, and thus still in a larger trading range. The key for POT will likely be the action in the general markets. If the markets head lower for another leg down, its doubtful that POT will be able to hold support.
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Good Trading,
Joey
