Agriculture

[ericoleman]

I spent sometime looking at the agriculture sector this weekend. Attached are some general observations.

A Review of Agriculture

Best,
Eric

[sable10es]

Thanks for your work on the ags and POT

[Rembert]

Talking about agriculture ... on july 12 there was a huge volume spike in DBA. Allong with it there was a huge spike in EV.
Is this a sign that points to a potential breakout or should one not read too much into it ?

[ericoleman]

Rembert,

Thank you very much for sharing this. I hadn't even thought to consider DBA in my first analysis for some reason. MOO also shows a similar pattern, which seems to be playing catchup with some of the individual stocks. I think LP may have been shorting MOO against other long positions, and the EV on ETF's can be sometimes difficult to interpret since new units are being issued on a regular basis.

My initial analysis is still playing out, but I believe agriculture stocks have a fair probability of maintaining a leadership role if the market moves higher, especially with the strength being witnessed in materials and energy during the past few weeks.

Best,
Eric