Take a Look at WEAT

The chart looks good. The fundamentals say the same. https://www.barchart.com/shared-chart/WEAT?chart_url=i_16573… Ditto CORN, BAL, SOYB.

Warning: All of the ETFs that track single commodities, e.g., coffee, sugar, cotton, live stock, etc. tend to be thinly traded, as do even the broader commodity indexes such as GRU, DBA, etc. So the investing/trading problems are three-fold. #1, figuring out just what it is you’re betting on; #2, figuring out why/how prices for the underlying are diverging from their supposed fundamentals; and #3, trying to get in and out at “a fair price”.

Again come the Standard Disclaimers: I’m long GRU and DBA. Do your own due diligence before making a bet.

2 Likes

All of the listed stocks are excellent stocks to have owned 2 days ago right out of the gate.

WEAT is about to breakout passing over the 200-day moving average lasting only 3 months. Looks more like a Seasonality play.

https://stockcharts.com/freecharts/seasonality.php?symbol=we…

https://stockcharts.com/freecharts/seasonality.php?symbol=co…

https://stockcharts.com/freecharts/seasonality.php?symbol=ba…

https://stockcharts.com/freecharts/seasonality.php?symbol=so…

https://stockcharts.com/freecharts/seasonality.php?symbol=gr… best time to own GRU is in December and January

https://stockcharts.com/freecharts/seasonality.php?symbol=Db… best time to own DBA is in October, November, and December.

https://schrts.co/bWqFINsk most HODLers ( hang on for dear life) would own when the price crosses over the 200 ema heading north and then sell when DBA crosses back down over the 200 ema no matter how long it takes.

A Swing Trader would make more money via the power of compounding.

Quill,

All of the agriculturals --and the energy complex-- are impacted by “seasonal” factors and can be traded that way. Heck, even the retailers are impacted by seasonal factors. But that’s not my gig, nor really yours. Hence, referencing “seasonality” is more a distraction than a useful insight, which leads me to suggest this. Pick a stock, any stock, or any industry, or sector, or country, or whatever, and you’ll quickly find there are more ways to trade it/ invest in it than could ever be pursued in one lifetime. Therefore, choices have to be made and exclusions have to be imposed, or else nothing gets done, because the investing/trading variations just keep proliferating.

Right now, in this market, it makes sense to me to keep time frames short, which means --again, to me-- that “seasonality” can be ignored. Not “shouldn’t be” ignored. But can be ignored.

Arindam