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......
Posted by Erik at 5:37 PM

3 comments:

  1. AnarMarch 20, 2009 at 10:07 PM

    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!

    ReplyDelete
  2. In Debt We TrustMarch 20, 2009 at 10:38 PM

    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.

    http://www.stockstop.org/viewtopic.php?f=10&t=869

    ReplyDelete
  3. ErikMarch 20, 2009 at 10:42 PM

    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.

    ReplyDelete

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