• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Why Buy DBA: Agricultural Fund ETF?
Stock

Why Buy DBA: Agricultural Fund ETF?

by March 28, 2023
by March 28, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Last week, I tweeted:

I believe the #commodities prices in food softs $DBA have bottomed. $GLD-well those who know me-that I pointed out bottomed months ago. $SLV now outperforming. That tells you something. Maybe even #oil. Get ready for the Commodities Super Cycle.

If you are not following me @marketminute on twitter, you should consider doing so, as I often make such comments or point out specific trades.

Technically, the charts were already setting up for a buy in the individual grains. We decided to focus on DBA.

Fundamentally, we have geopolitical issues, as we know. I also talk about sugar, which still rocketing in price, a lot. Now weather is becoming an additional factor. I read today that Russia is refusing to sell wheat below $275 a ton, which, combined with failing HRW wheat in the plains and Southwest US and heavy snowpack in the northern plains, means supply could get even tighter.

DBA tracks an index of 10 agricultural commodity futures contracts. It selects contracts based on the shape of the futures curve to minimize contango. Specifically, the underlying index includes corn, soybeans, wheat, Kansas City wheat, sugar, cocoa, coffee, cotton, live cattle, feeder cattle, and lean hogs. And there is a K-1 to investors.

Basically, you get great exposure to lots of commodities.

Technical Analysis:

The first chart shows the Triple Play Leadership indicator, or how DBA is performing against the benchmark.

The price chart of DBA shows the 200-DMA above the 50-DMA, or an accumulation phase according to our six market phases. On Tuesday, the price cleared the 200-DMA, closing .40% higher. On the Leadership charts, DBA poke its head out above the benchmark to show it is now outperforming the SPY.

The second chart shows our Real Motion Indicator or momentum. Here’s where things get real interesting.

The 50-DMA is ABOVE the 200-DMA. Momentum is in a bullish phase. Furthermore, the red-dotted line, or measure of momentum, cleared both MAs and the black horizontal line or zero point. Bullish momentum and a divergence with the price chart showing the 50-DMA below the 200-DMA.

What does this all mean? Seasonally, we are entering the make-or-break time for crops. Inflation-wise, food prices continue to escalate. In the U.K., grocery inflation rose again in March to a record 17.5%.

Disclaimer: We have a position.

For more detailed trading information about our blended models, tools and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.

IT’S NOT TOO LATE! Click here if you’d like a complimentary copy of Mish’s 2023 Market Outlook E-Book in your inbox.

“I grew my money tree and so can you!” – Mish Schneider

Get your copy of Plant Your Money Tree: A Guide to Growing Your Wealth and a special bonus here.

Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.

Mish in the Media

Mish talks looking for stock market opportunities on Business First AM.

Mish discusses long bonds, Silver to Gold and the Dollar in this appearance on BNN Bloomberg.

Mish sits down with Kristen on Cheddar TV’s closing bell to talk what Gold is saying and more.

Mish and Dave Keller of StockCharts look at longer term charts and discuss action plans on the Thursday, March 17 edition of StockCharts TV’s The Final Bar.

Mish covers current market conditions strengths and weaknesses in this appearance on CMC Markets.

Mish sees opportunity in Vietnam, is trading SPX as a range, and likes semiconductors, as she explains to Dale Pinkert on ForexAnalytix’s F.A.C.E. webinar.

Mish and Nicole discuss specific stock recommendations and Fed expectations on TD Ameritrade.

Coming Up:

March 30th: Your Daily Five, StockCharts TV

March 31st: Festival of Learning Real Vision “Portfolio Doctor”

April 4th: The RoShowPod with Rosanna Prestia

April 24-26: Mish at The Money Show in Las Vegas

May 2-5: StockCharts TV Market Outlook

ETF Summary

S&P 500 (SPY): Needs to clear 400 and hold 390Russell 2000 (IWM): 170 held- 180 resistanceDow (DIA): 325 could not hold-pivotalNasdaq (QQQ): 305 support 320 resistanceRegional Banks (KRE): Weekly price action more inside the range of the last 2 weeks  Semiconductors (SMH): Follow through on that key reversal lower w/ 250 supportTransportation (IYT): 219 is a level that has been like a yo-yo priceBiotechnology (IBB): Held key support at 125 area-127.50 resistanceRetail (XRT): Granny holding 60-still in the game-especially since that is the January calendar range low.

Mish Schneider

MarketGauge.com

Director of Trading Research and Education

You Might Also Like
  • AAPL and TSLA Stocks Are COLLAPSING!
  • Heads Up: Bulls Get Benefit of the Doubt as Positive Breadth Divergence Emerges
  • A Nasdaq 100 Stock Showing Relative Strength in August
  • Dow Theory Bull Confirmed! What Happens Next?
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Sector Spotlight: Stocks Entering Year’s Strongest Month
next post
The Halftime Show: Bullish and Bearish Estimate Revisions

You may also like

Buy the Dip or Sell the Rip?

April 24, 2024

Week Ahead: Putting Market Moves In Perspective; Watch Nifty From...

October 5, 2024

US Stocks Are Lagging The World For Now, But This...

August 18, 2023

Which Magnificent 7 Stock Would You Pick for Q2?

March 30, 2024

Earnings Analysis: GOOGL, AMZN, AAPL

February 3, 2023

Volatility Taunting Fresh Equity Buyers

September 23, 2023

How Long Can Semiconductors Lead the Market?

March 8, 2023

Alibaba and China — Can They Push Through Resistance?

August 12, 2023

Magnificent 7 Not All Magnificent!

February 29, 2024

Should We Use Weakness To Accumulate NVDA Before Its Next...

October 22, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Watch Mish on Real Vision and...

    October 4, 2023

    Can Small Caps Lead the Market...

    August 25, 2023

    Mastering GoNoGo Charting: Scanning Securities on...

    June 28, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here