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Is Agriculture ETF Ready to Break Out and Send Bearish Message to Bonds?

Published 04/25/2024, 03:13 AM

To be successful, active investors have to watch (and create) indicators that the mainstream media do not follow.

Trading is hard, requiring discipline and a strict set of rules.

DBA vs. TLT Chart

Today, we look at a unique set of sectors and their binary price action: “Monthly” charts of the Invesco DB Agriculture Fund (NYSE:DBA) versus the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT).

As you can see, Ag and treasuries have moved opposite each other for nearly 17 years.

That said, the past 4 years have seen a significant bounce against the trend.

Is it time for a DBA to reverse to the downside? And TLT to reverse higher? Or will DBA breakout?

In my humble opinion, what happens here is a big deal. Stay tuned.

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