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New Plays
Long Plays
Short Plays
None EWZ
  SQM

New Long Plays

None today.
 

New Short Plays

iShares Brazil - EWZ - close: 77.50 change: -2.70 stop: 80.75

Company Description:
The iShares MSCI Brazil Index is an exchange traded fund (ETF) that mimics the performance of the MSCI Brazil index.

Why We Like It:
Finally, after three weeks of consolidating sideways near $80 and under its 200-dma, shares of the EWZ have broken from their trading range. The EWZ broke down today and the next level of support is the $72 level followed by the $70.00 mark. We are aiming for the $72.50 mark. We're suggesting a stop loss above today's high. Our time frame is about six weeks.

Picked on July 24 at $77.50
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume: 14.1 million

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Chem.& Mining Co. of Chile - SQM - cls: 38.67 chg: +0.43 stop: 40.55

Company Description:
SQM is an integrated producer and distributor of specialty plant nutrients, iodine and lithium. Its products are based on the development of high quality natural resources that allow the Company to be a leader in costs, supported by a specialized international network with sales in over 100 countries. (source: company press release or website)

Shares of SQM displayed some volatility this morning as investors digested news of a three-year $1 billion capex plan from SQM. Yesterday's breakdown under its 50-dma and the $40.00 level was bearish. Today's failure to bounce only confirms the sell signal. SQM can be a volatile stock but we're going to risk using a stop loss at $40.55. We have two targets. Our first target is $35.15. Our second target is $32.00. The Point & Figure chart is bearish with a $30 target. FYI: Keep an eye on the other big potash and fertilizer stocks. Their news and moves could influence trading in SQM.

Note: If finding shares to short is a challenge then consider buying the August $40 or August $35 put options instead. Keep the stop loss on the stock, not the put.

Why We Like It:
Shares of SQM displayed some volatility this morning as investors digested news of a three-year $1 billion capex plan from SQM. Yesterday's breakdown under its 50-dma and the $40.00 level was bearish. Today's failure to bounce only confirms the sell signal. SQM can be a volatile stock but we're going to risk using a stop loss at $40.55. We have two targets. Our first target is $35.15. Our second target is $32.00. The Point & Figure chart is bearish with a $30 target. FYI: Keep an eye on the other big potash and fertilizer stocks. Their news and moves could influence trading in SQM.

Picked on July 24 at $38.67
Change since picked: + 0.00
Earnings Date 08/04/08 (unconfirmed)
Average Daily Volume: 2.1 million
 

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