Well, it seems the whole world knows about the ag sector. For me, that means it's time to get the *blank* out. If you take a look at the chart of
DBA, an agriculture ETF, it is hitting a level where it typically pulls back from. While there are more complex forms of analysis, just eyeball how far price is from the 20 day moving average. It's probably not a great time to buy if you are not already in. If you are, it's time to tighten stops. Today I sold half of my longer term position in this ETF.
Do not get me wrong, I am still bullish on the sector and this ETF. However, it is time for a breather, and we should be able to find a good entry in the coming weeks. If we get a low volume pullback to the $39-40 range, you can bet I will be back in.
1 comment:
Great call on the top. When you said this is a spot where it typically pulls back from what did you mean? Great blog.
Thanks
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