Friday, August 22, 2008

DBA


The Powershares Agricultural Fund ("DBA") is an ETF that allows participation in the grains futures markets. It as been in a downtrend since the first quarter of 2008, following a multi-year bull market in grains. It now appears that the correction is over and a resumption of the uptrend may be upon us. If so, there are mega profits to be made in DBA and it's call options.




One way to look at DBA is another Triangle-friendly stock. With a recent BUY Triangle and the MACD oversold and about to turn up, this could be the presage to an extended rally.


A

7 comments:

Anonymous said...

I agree that commodities look like they're heading back up. Any reason you're going with DBA over something with a little more juice in it... say like DIG?

Allan said...

Why not both? DIG is energy, DBA is grains. Both are plays on weak dollar.

Dave said...

Allan, if your interested in looking at yet another example, what about slv?

Anonymous said...

Allan,
How is POT looking for short/long?
thanks.

Anonymous said...

Allan - which months calls are you in? In the case of DBA, are you in Sep or Oct or ? calls? What is your typical strategy as to how far out do you purchase the calls?

Thanks,
Ron

Allan said...

Ron, January 2009

Anonymous said...

Have you been following he volume levels of Powershares ETFs and related options? They used to be too illiquid to trade.

Sam