I will be looking to short the Agriculture space by buying puts in [[DBA]]
Going through a few charts tonight, I notice Ag is ready to resume it’s recent downtrend. DBA, which measures the space, rallied above the 50 MA, but failed to hold. I will be now be looking for a break below the 200 MA with significant volume.
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Also, the market is at a critical juncture. Let’s take a look at the [[SPY]] , which measure the S&P 500.
Last week we saw a clear break in our recent trendline, then Friday we saw a re-test back to that same level. I will be watching to see if we can clear 130 with significant volume.
If we fail to move past resistance (recent trendline), I will be looking to short the market.
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I do not disagree that Ag is headed to the crapper, but DBA is a commodity play directly on wheat, corn, soybean, sugar, which is not necessarily the same relationship as ag companies.
what about long AGA which is 2x short the agries?
true, bad choice of words on my part.
Instead of “measures” I should have used “correlates”
Buylo,
AGA is good and so is SMN. But, if you are going to play options DBA offers the best spread.
this market is toast. i wish there was an etf with the ticker ‘JAM’ that was 10x inverse the s&p.
LDK, ENER – chasing either?