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Agriculture Stocks Jump!

|Includes: AGU, CF, MON, MOS, NFLX, OUTR, Potash Corporation of Saskatchewan Inc. (POT), SHLD

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The market continued to creep higher today.  Gold and silver pushed higher again.  Agriculture stocks led the advances.  In my Market Forecast this weekend, I mentioned that "POT, MOS, AGU could be ready to do some catching up to CF."  They did exactly that today!  POT jumped +5.12% to close at $152.07 and traded as high as $154.44.  This is very significant as it is above the August high when BHP gave a $40 billion buyout offer!  MOS closed up +4.7% and AGU popped +4.52%.  CF, after resting for a couple of days, ran back up with rest of the sector, adding +2.17%.  MON has also been on a tear, rising from last week's $60 level to now around $69!

This morning, in the Trading Room, I commented:

December 29, 2010 7:15 AM
should see $90+ soon

I got into Jan 90 calls at $1.9 and sold them at day high at $3.6 for an intraday gain of +89%:

These AGU Jan 90 calls closed at $3.1.  AGU went as high as $91.32 and closed at $90.16 today.

We also got into Jan MOS 75 calls at $2 and took profits at $3.15, for an intraday profit of +58%:

  • December 29, 2010
  • 11:02 | HappyTrading MOS ($75.23) Sold to Close 01C75 Jan 75 calls, at $3.15 +58%
  • 07:29 | HappyTrading MOS ($73.35) Bought to Open 1C75 Jan 75 calls, at $2.00

These MOS Jan 75 calls closed at $2.92.

POT really moved and it now has weekly options!!  The December 31 150 calls opened at just 11 cents this morning and went as high as $4.9!!  They closed at $3.13, still up a whopping +3377.78% for the day!

The rare earch metal plays MCP and REE went up again today.  These were mentioned in last night's article.  MCP closed up +6.76% and REE vaulted another +14.3%.  REE still has room to gain another couple of points before seeing some quick profit-taking.  MCP could easily test $55 again.

Coals, as discussed in this weekend's Sector Watch, remained strong.  WLT ramped up anther +5.42%, recording a new all-time high at $125.91!  ANR also advanced to a new 52-week high, climbing +4.42% today.

Yesterday, SHLD went higher on the news that it is getting into online movie business.  Today, it got even more attention, as its shares garnered another +6.38%, up $4.47 for the day!  On the other hand, NFLX sank $3.4 or 1.85%; and, CSTR dropped $1.6 or 2.76%.  NFLX will break down if it breaks the support at $180.  CSTR seems to have already broken down and could see $52 soon.  In a down market environment, CSTR could fill the gap at $46, created by its recent earnings in October.

The Dow closed up +9.84 points; SPX added +1.27 points; Nasdaq gained +4.05 points:

GLD (gold) and SLV (silver) made further gains.  MOO (agriculture) added +2.11%.  OIH (oil services) gained +2.12%.  XLF (financials) was muted.  FXI (Chinese ADRs) bounced +1.4%.

We looked the charts for SPX and Nasdaq yesterday.  Since the market indices were changed only slightly, we'll look at the charts on another day. 

As mentioned last night, this market is mixed.  While the market indices glide slowly higher and VIX stays below 18, we could pay attention to individual stocks a little more and catch winning trades on both sides.

Good night and HappyTrading! ™ (click to see our Facebook Page)

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.