DBA - Nov 16, 2008

charts courtesy of stockcharts.com

On Nov 3, I talked about the PowerShares Agriculture ETF (DBA). I have been following it since and have been seeing some encouraging signs.

Before taking a look at DBA, I would like to say that this blog and this writer are not about dispensing any sort of investment advise, recommendation, or proposal. In case some readers overlook the disclaimer at the end of this page, I should emphasize that this blog is about me publicly using my right to free speech, and expressing my ideas and musings. I may or may not engage in market speculation based on ideas discussed here. Furthermore, I may, at a later point, realize that I have made a mistake (I do make mistakes aplenty) about a position without feeling compelled to write about it at the exact time of such realization, if at all. In no way, this blog’s postings should be construed as recommendations of any sort. Any market decision taken by any individual is that individual’s responsibility and not mine.

OK, with that monkey off my back, let’s take a look at DBA

Here, I am making a comparative study of DBA against S&P 500, and VTI (a total market ETF) as well as against the oil and gold ETFs. It’s been behaving very well



This is the updated version of the chart that we saw in the Nov 3 post.

It’s been holding very well, working on improving its technical profile. Am I interested? Yes, I am. So much so that I have spent some time calculating some pivots

34.7

32.9

31.2

29.4

27.7

26.1

24.5

22.9

21.5

Will I be telling anyone to buy or sell, or how, or when to buy or sell? Absolutely not.

Different people have different speculative styles, and every individual should define his/her own entry, exit, risk management, as well as any other criteria that may be of importance to that individual.