long term BUY targets being hit on the commodity ETF DBA
the first target zone we have been watching for a LONG time was hit on the DBA ETF last week. note, we also have other targets in the 12.70′ ish area but, as far as long term targets being hit – DBA has hit them. a low risk BUY in today’s climate.
note, when looking at the composition of the DBA ETF, discovered that the largest holding at 14% is CLTL or an inverse bond fund. Interesting … other than that we have the typical coffee, soybean, corn, sugar, cocoa, wheat, cattle and hogs … not that much volume but if your not a futures player then this is an opportunity to get a broad basket of commodities in your portfolio.
as you can see below, the level held extremely nicely but after peaking in Mid-Oct, the bid was crushed. IF this level is a significant low, then we shouldn’t go below 16 again. either way, a potential label is shown. the characteristics of wave 2 are that the general traders feel the bear trend is in fact (it could be) and it can retrace all of the first wave up ….so, that is why 16 is so crucial. If we lose 16 then back to the drawing board …
the bearish interpretation is the area labeled 1 or A is actually the completion of the corrective move and we will lose 16. not sure if that is the case because of the long term pattern that was hit back in July.