Opinion on  Potash Corp. of Saskatchewan Inc. (POT)     Sector: Basic Materials  >  Industry: Non-Metallic Mining
Bearish trend, but, due for a brief bounce...

We've been short POT with August $195 puts since the $205 area. We've taken profits on 75% of the put position for nice profits. Our stop on the short position is $184 to close out the puts. POT is definitely in a topping pattern and forming a bearish downtrend, but, is short-term oversold and we expect a bounce back to the $190-$200 area soon. We will ride that bounce, but, will use any strength to build a put and short position for the inevitable move back down in the coming weeks. Bottomline: due for an oversold bounce, then, a test of the recent lows, STT