Potash (POT, $198.26, up $13.85) is having a great week, up 20 points, and made a serious run at $200 today. News that the company struck a deal to sell potash to China’s Sinofert Holdings for $400 more per ton than last year got the shares rolling. FYI – Potash is basically a fertilizer that contains high amounts of essential plant nutrients. It is used for corn, wheat, and vegetable crops.
The stock hit a high of $199 and was in a steady uptrend all day. I mentioned the May 200 calls (PYPEX, $13.20, up $6.30) yesterday and they nearly doubled in one day. With the April option contracts expiring this Friday, $200 could be the new battle ground between those who are bullish against those who are bearish. As option traders, we were just happy to go along for the ride and now you should set stops at 50% above your entry price.
The market got a big lift today from Intel (INTC, $22.13, up $1.22) and rallied nicely. After the market closed, IBM (IBM, $120.47, up $3.30) reported an outstanding quarter and raised guidance for the year. This could lead to further gains for the market on Thursday. The stock was up another $3 in after-hours trading.
Who knows whether this will be another faded rally? On Monday, the Dow looked headed below 12,000 after it’s 100 point drop, hitting a low of 12,200. Yesterday’s 250+ gain to 12,619 has the Dow closer to 13,000 now. However, resistance is ahead at 12,800 and it will be interesting to see how this plays out.