StocktoberFest Analysis – Sociedad Quimica y Minera de Chile (SQM)

Tuesday, October 25, 2011 1:00 pm



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StocktoberFest – Horowitz & Company’s QFT Analysis onSociedad Quimica y Minera de Chile (SQM).

When the analysis and information is made available, we will update this table with the article link(s). Also, notifications will go out via Twitter (@andrewhorowitz)

(See the entire month’s schedule –> HERE)

Requested by: PATRICK




Horowitz & Company’s proprietary Technical Scoring System (T|score) takes into consideration both individual security technicals as well as the overall market direction when considering whether or not to purchase a company. H&C’s Market Trend Indicator (MTI) is a measure which is designed to evaluate the overall trend in the market. There are four designated levels to assess the trend which include: Strong Downtrend, Downtrend, Rally and Strong Rally. We are currently in an environment where the MTI is in a Strong Rally. All of our indicators are showing that the markets are in a strong rally and risk is back on. Investors of all risk tolerances may consider moving to a higher level of equities while still looking to pick up companies with increased levels of technicals. With that said, this stock ranks in the mid to below average percentile of stocks from an individual security technical score. H&C would not consider purchasing this position in any general market with the exception of a Strong Rally. H&C would be hard pressed to purchase this position even in a Strong Rally considering all other companies that may score higher technically in our growth model.

Below are some of the areas where Quimica Y Minera Chil-Sp Adr (SQM) excelled or detracted from the value of the technical score:

Stochastics are currently showing some bearish attributes which may mean this stock is slightly overbought in the short run.

Quimica Y Minera Chil-Sp Adr (SQM) over the past two weeks has recently crossed above its 50 day moving average. We see this as a bullish sign as the momentum is starting to change.

In terms of price and volume especially over a short period of time it is important to see if there is any weight behind either a rally or correction. This company has shown to have less than favorable price action in terms of volume and therefore has a greater chance to move lower if the overall market and economy are to trend lower. Higher volume with negative price also will provide resistance levels for this position if it were to increase back to these levels.

On a 12-month rolling period this company has not performed as well when comparing against its peers and equities in the S&P 1500. We see this as a negative sign for this company as it shows weakness relative to the overall market

H&C currently sees Quimica Y Minera Chil-Sp Adr (SQM) in a Short Term Uptrend and Long Term Uptrend.

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2 Responses to “StocktoberFest Analysis – Sociedad Quimica y Minera de Chile (SQM)”

  1. Patrick Dubois on October 26th, 2011 5:35 pm

    Thanks for your analysis on the stock I proposed!

  2. Andrew Horowitz on October 26th, 2011 7:02 pm

    :-)


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