When we last talked about CGA it was forming a good second basing pattern. I meant to post when CGA broke out of its second cup and handle base in mid November, but if anyone is considering it for purchase, consider it on a pullback to it's 10 week moving average or better yet, set staggered buy orders at the 14 level.
I have been a commodity bull since posts going back to November 2008, and still am bullish the commodity arena. My Scottrade account remains overweight commodity producers and I am looking to add to some of my ongoing positions. The only thing is, I'm not planning on any purchases now to be eligible for LT Cap gains before I sell them.
What is the significance of CGA breaking out? China Agriculture, that means food. Folks, it's all good fun when the powers that be print money so everyone can beef up their 401K's, and investments in Oil and gold prices, but at the end of the day, we can live without Oil, Gold and stocks. Food is something that we have yet to see a real scare for and I can see people really becoming agitated in some parts of the world and US for that matter when the price of bread skyrockets like Oil did in 2008. Many agriculture ETF's, stocks and Indicies have begun to break out from bullish formations, even though oil is currently basing/pulling back some. Anyone else notice their grocery bills rising besides me?
Opportunities are still there for the inflation play, but look beyond what the headlines say (Oil, Gold) and you never know what you'll find.
*CGA Disclosure: None
I have been a commodity bull since posts going back to November 2008, and still am bullish the commodity arena. My Scottrade account remains overweight commodity producers and I am looking to add to some of my ongoing positions. The only thing is, I'm not planning on any purchases now to be eligible for LT Cap gains before I sell them.
What is the significance of CGA breaking out? China Agriculture, that means food. Folks, it's all good fun when the powers that be print money so everyone can beef up their 401K's, and investments in Oil and gold prices, but at the end of the day, we can live without Oil, Gold and stocks. Food is something that we have yet to see a real scare for and I can see people really becoming agitated in some parts of the world and US for that matter when the price of bread skyrockets like Oil did in 2008. Many agriculture ETF's, stocks and Indicies have begun to break out from bullish formations, even though oil is currently basing/pulling back some. Anyone else notice their grocery bills rising besides me?
Opportunities are still there for the inflation play, but look beyond what the headlines say (Oil, Gold) and you never know what you'll find.
*CGA Disclosure: None
