Friday, March 20, 2009

The Gold / Ag's Hedge Trade......

just a brief explanation of what i see here is most likely.

Long AG (dba)

Short Gold (gld)
Why i like it so much:

Weekly Chart, huge divergence between the 2 "inflation plays".........has been created. (chart)

So now what do the technicals say for each, which chart has more bullish potential going forward?

I don't feel "super" great that DBA is going way up! (kinda good tho)
I don't even feel "super" great that gold is going much lower! (kinda good tho)

But i do really think the DIFFERENCE in the 2 is yummy......


  1. I agree on the gold weekly chart. Retesting the breakdown, so it should go lower from here.

    Ag- I got some FEED and SEED :) Looking good to me!

  2. While I am bullish on ag long term I do not want to seem like I am always talking my book. Here is a more cautionary take.

  3. thanks, for the read.

    im not "bullish" ag, i just feel that it will continue to outperform gold here for a good lil while ahead

    DBA beat GLD by 3% this past week.