Tomorrow after the close, Mosaic (MOS) is forecast to post earnings of $1.07 a share in the fiscal third quarter… and I have my eyes all over it.
MOS is part of the ‘scarcity’ trade that I believe we’ll all have to pay more attention to as time goes on. Today was a good example of such a trade – rare earths. They aren’t actually that rare, but hard to find in concentrated areas and even harder to extract.. the idea is still the same. There is a growing fear of who owns resources – energy, food, water, and hard commodities (gold, silver, etc).
It’s obvious from looking at the chart that traders are waiting on the news. It’s showing nice support on SMA100, but basically trapped under SMA20. Since MOS is part of the scarcity sector, I expect good earnings.. however, I’ll trader after hours or on Thursday. I would like to jump in north of SMA50 with a swing to 90.
It’s often easier to trade the sector followers that don’t gap quite as hard as the company that reports.. here are a few to watch headed into MOS earnings.
MON – same story.. Ags have not participated in the market moves seen in other sectors over the last few months. Looking for long entry above SMA50.
CF – 153 target.. may be a May options play. We’ll have to see.
POT – Lots of chatter here and I expect this to be a direct beneficiary if MOS reports well. A break through SMA50 could open the doors.
SMG – Trading well… but, reaching slightly overbought levels. A break of 58.80 might bring in some buyers.
DE – Deer always benefits when ags are moving. It’s one of my long term faves and I’m just looking for good entries for trades. Chart is a little messy right now, but long over the horizontal resistance might bring me into the game.
COIN – on the risky penny side, keep an eye on COIN. It tried to break out of the descending channel today.. If it does it again, it could show itself as a possible scalp. Watch for volume!
AGU – this stock is a little heavy, so I’m not getting involved until it proves itself – I’m looking for possible entry over SMA20.. 50 preferred.