Geopolitical risk and macroeconomic concerns continue to dominate the market.  While we don’t know what’s going to happen next, there continues to be speculative trading on continued conflict in the middle east.

And perhaps the market finally has something to stick with.  For months, the market has chopped and rotated in and out and back and forth in the broad indexes, sectors, and individual stocks.

But now, there’s a theme to trade and invest on – companies that are impacted by the conflict in the middle east.  While that is thematically bad for many stocks, there are others that are expected to be better off.

While oil prices remain high, not every oil company is increasing in value.  And while defense stocks often perform well in these kinds of scenarios, it doesn’t seem to be the case now.

But there are diamonds in this rough market, and one name in particular came to my attention thanks to the Stock Forecast Toolbox!

Once I saw the chart, it was obvious that the market was buying, and once I looked up the rationale, it was all to clear that it made sense.  But it wasn’t my natural go-to stock.

The stock I’ll highlight today is CF Industries (CF), a global fertilizer company:

Seeing the pullback over the last 3 trading sessions got me a little nervous, but at the same time, the stock was overbought and may simply be setting up a bullish technical formation called a bull flag.  To help me get clarity, I turned again to the forecast toolbox to see what’s being forecasted in the next 2 weeks.

When I look at the forecast toolbox’s projections, it’s quite bullish, and I can see why:

The benefit here is clear.  Fertilizer companies are set to soar with a shortage of fertilizer, and there’s a real possibility of a major rally.  It can be hard to buy a dip in the price and convince oneself that this is the end of the rally, but the forecast toolbox helps me gain confidence that buying a dip is the right approach.  The April 17th $125 calls are currently trading for about $6.65, and with the toolbox forecasting upside to $140+, this is a potential homerun trade, once again.

If you’d like to get your hands on the Stock Forecast Toolbox and see what it can do for you, you can access a free trial HERE.

And if you have any questions, never hesitate to reach out.

Keith Harwood

Keith@OptionHotline.com