Such a long, lovely base by Grant C

Since we had so much fun discussing GLD, I thought I throw out another one--DBA. However, since the price movement is pretty straightforward I doubt if we arouse the same level of opinion. DBA is the agricultural ETF, mostly softs. As you can see on the weekly, it crashed with everything else and has been trading sideways since Oct. 08. The result has been this enormous base, which means that the upside potential is equally enormous. The trick of course is the entry, and for that we need to look at the daily. The daily has a declining 200 DSMA, and a squeeze breakout showing. From past experience, the first time price hits a declining 200 DSMA it sells off. So, I'm waiting for price to come back to the rising 20 EMA, before thinking about buying. The other way to do it, would be to wait until price trades through the 200, and buy on the first pullback, or retest. Still, you could wait until the stock market corrects and the weekly 5-week RSI drifts back. The idea is not to chase an OB ETF, just be patient and wait for a reasonable entry. In any case, we can probably assume that the price of food isn't going down much in the next few months.