Thursday, August 29, 2013

Agriculture ETF: UAG

I don't know much about the agriculture business, except that if we don't go back to a hunter gatherer society it's here to stay. So is it in a reverse or straight BOT or megaphone pattern? Sinse these are the only patterns I'm looking for (the megaphone pattern being a type of BOT, blow off top, in my view) it better be if I'm going to trade it.

So let's see, here the chart of the agriculture ETF UAG straight:

It's been sloping lately, lets magnify the last part and reverse it like it was a 3X daily Bear ETF.

It's a pretty good climb, more than doubling the value. I see two main alternatives for this chart.
1. It touched the trendline from below a second time, it should therefor go down from here. (that means up in the real non inveresed ETF).

2. It can, while still respecting the broken trendline, start to do bigger megaphone patterns and thus still go up from here in the reverse chart (down for real). It has not been very megaphone-like yet. It's been more of a steady climb.

All in all this is worth monitoring, might even take a small position but probably not yet.

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