DBA Agriculture ETF Monthly Chart; Oversold; Falling Wedge; Positive Divergence; Lower Band Violation

The stars are aligned for the ag sector. Perhaps the US dollar will weaken providing the lift in ag plays. DBA has been beaten senseless over the last decade punched in the face year after year. Price drops into the green falling wedge, which is a bullish pattern, with oversold conditions and positive divergence across all indicators. In addition, the lower band was violated so a move back to the middle band at 17.90 and also the upper band at 19.86 are on the table. The beatings do not stop until moral improves and it looks like DBA is improving its attitude. BA is basing and ready to play nice for the years forward.

Investors hiding dough in utilities and staples, thinking they are smart in case the broad stock market retreats, are chasing old ideas that will not work in this modern-day central banker-controlled markets. The last decade of obscene Keynesian spending by the Federal Reserve, ECB, BOJ, BOE, PBOC, RBA and others, has pumped all asset classes to lofty levels. It does not matter if it is a utility or an industrial or a healthcare stock or a bank. The central bankers have destroyed all price discovery and the expected business and economic cycles. However, if you are looking for a place to hide a bunch of dough, DBA is an opportunity and likely a better place than utes or staples.

The monthly chart says DBA will move sideways to sideways higher for the remainder of the year. If the stock market collapses, DBA will likely just stumble sideways. If you are an intermediate and long-term trader rather than a day, VST, swing or short-term trader, DBA is a play that should interest you. If you are a big-time money manager, it would be prudent to park some money in DBA, and also look at other ag plays.

DBA will likely perform better than utes or staples if the market turns south and in general, DBA likely has far more upside ahead for it than utes or staples. Keystone does not hold any DBA right now but will buy some as a longer term play for this year. Of course if it pops and hands you some quick dough, it would be prudent to take the money, and then reenter on a pullback. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.