Another Sunday Another Sector Play
Posted by lasertrader on September 12, 2010
Now that my Patriots are off to a great start, while you New Yorkers are opining about your Giants and Jets, I have a few minutes to point out another macro sector that I am playing and looking to play over the coming weeks. I don’t have time to pour a lot of background into this post so I will be short and sweet. Earlier this week I tweeted out my entry into the Grains. My initial positions are in JJG and GRU. These consist of commodities plays in corn, wheat, soybeans etc.
From a macro point of view we have a world economy that is starting to get back on track. Global population that is still growing at a rapid pace and short term catalysts like Russia limiting exports and weather leading to lower yields. Take these macro themes into account as you look at the charts which tell the story for the trade. I hope these aren’t too small but I thought it important to show the larger time frames. Both ETF’s have run up to longer term resistance and pulled back 38.2% on the daily. They are now moving up nicely to the highs again. If you pull back to the weekly time frame you see a multi year base that is looking to break out to the upside. If they do, there is plenty of room to run. I will be looking to add to these initial positions as the trade plays out as well as look for other grain/agriculture opportunites that may include JJA MOO PAGG CORN DBA
Here are the charts ( Top Left = Daily, Top Right = Weekly, Bottom Left = Monthly, Bottom Right = Hourly)
Good luck this week.