By Jeff Clark, editor, Market Minute It’s time to buy agricultural commodities. The Invesco DB Agricultural Commodity Fund (DBA) – an exchange-traded fund (ETF) made up of 17 different agricultural commodities – has been a miserable investment in 2020. DBA started the year at $16.50 per share. That was the high point. The fund closed Wednesday at $13.40. Recommended Link | This week, we’re airing “The Crash of 2020” It’s a must-see new warning that could set the stage for one of the biggest and fastest investment gains of your life. It reveals how an “aftershock” of the coronavirus crash could happen any day… And why it could either make you 5 to 10 times your money… or victim to the biggest market drop since March 16. | | -- | I suspect that may mark the low point – or something darn close to it – because the stunning 20%+ decline since the start of the year has actually created a bullish-looking pattern on the chart. Take a look… The action over the past month has formed a “bullish falling wedge” pattern on the chart. This happens as a stock makes lower highs and lower lows, and where the distance between each high and low shrinks. DBA is now approaching the apex of the wedge. So, it’s likely to break out, one way or the other, within the next few days. All the various technical momentum indicators at the bottom of the chart have been rising even as the price of DBA has been falling. This “positive divergence” is often an early warning sign that the current downtrend is losing momentum and is getting ready to reverse. It looks to me like the next big move in DBA will be to the upside. And, that move should happen soon. The most obvious upside target is the top of the wedge pattern at about $14.60 or so. That’s $1.10 per share higher than where the stock closed yesterday – which would be a gain of about 8%. Traders who are looking for a low-risk setup, with solid upside potential, should consider DBA right here. It’s one of the best-looking trade setups in the market today. Best regards and good trading, Jeff Clark P.S. I'm convinced we've just entered the third phase of the bear market. Based on what I’ve seen this past week, we’re in for an "aftershock" – where the stock market could take out its previous low from March. It sounds scary, but this is an exciting time if you have the right mindset. With the right trading method, bear markets actually provide some of the biggest opportunities to profit. Profiting from the bear is what I do best. I implore you to watch my presentation for all the details on my specific system that shows you how to make massive gains in this exact environment. Reader Mailbag More than a few satisfied Jeff Clark Trader subscribers thank Jeff for his recent successful trade recommendations… Great job on the XLK and the SMH trades. I really enjoyed ringing the cash register. Have a great day. – Richard The XLK recommendation worked exactly as you predicted. Gained a cool 50%. Just awesome! – Wilfred Jeff, thanks so much for the heads-up to sell the XLK puts today. I took a nice profit when the market has otherwise been crashing the last couple of days. I am looking forward to your next trade recommendation! – Steven Great job timing the SMH puts we bought on Friday, to sell two sessions later in my case, for a 65% gain! I needed that. I'd been building too much short exposure to offset my long positions, and the rally over the prior two weeks, since hedges were added, has been disappointing. I took a chance on Friday by adding more short exposure, but since I've been in this situation, I’ve thought through the pros and cons. I thought I didn’t need more short exposure as a hedge – it's been a big drag – but I do need profitable gains. Jeff Clark’s trade explanation makes more sense than any of my existing hedges, so I bought a couple of contracts at a modest risk, and gained enough to offset a loss elsewhere in my portfolio, in addition to reducing my losses as the S&P 500 fell 4.8% since Friday's close (no small potatoes!). Grazi! – Tim Jeff, what a beautiful trade! I was able to realize a 66% return in two days because of your insight! Plus, a 45% return on SPY puts. Waiting patiently for a reload... thanks again! – Randy I sold and made 69% on my first trade ever! Thank you! – Oscar Hi Jeff – nice trade on the XLK puts. Sold off 80% of everything, so great return. Still have a few puts, with break-even stops. We will see if they can hit the 100% profit point. Thanks! – Mark Here we have Russell and William thanking Jeff for his expert knowledge and training videos (members can access them here)... Hi Jeff, I just finished watching your options videos and I just wanted to tell you that they are the best for explaining what options are and how to best use them. Two years ago, I was convinced that there was a better way to make money in the stock market, but had never heard of options. I started reading and came across options trading. I spent the better part of those two years attending webinars and reading options e-books to learn how to trade. Too bad I didn’t find your videos first. What took me two years to learn was explained better in your videos that took me a couple of hours to watch. I’m also making good money by following your trade recommendations. Thanks for helping out the little man. – Russell Jeff is an absolutely great teacher. I'm new, but cannot stop going through his videos. – William Dear Jeff, I wanted to tell you how pleased I am with your trades. Your instructions are clear, easy to follow, and bring good success. I feel like I can learn from you and grow my small account to a substantial balance. Of all the services I’ve tried, yours is the best by far. I wished I’d started with you earlier. Thanks for guiding me into and out of each educational trade. Happy trader. – Patrick From Jeff's Monday issue, Robert gives his perspective on bitcoin… Jeff, one unique thing about bitcoin is the "halving," which is happening next month. History has shown that this event is extremely bullish for bitcoin over the next year or so. Just something "different" to consider when analyzing this unique instrument. Cheers! – Robert And finally, Ryan gives his insight on last Fridays Market Minute… Hi Jeff, this disarray is obvious that correlation may very well be dead with what we’re seeing in the oil market today. It’s blatantly obvious that the Fed is in complete control of the markets right now. We’re witnessing in live time the greatest monetary reset that some have been predicting would occur for years now. We must trade with this fact fully in the forefront of our minds. What should be, and has been, in the past natural order and correlations may not play out the way we think they should. But if we can trade knowing how the Fed is going to proceed and try to prevent any kind of natural or healthy risk of loss, and eliminate real price discovery, then hopefully we will continue to be able to adapt and navigate our “craft” successfully. We should be able to protect ourselves and profit immensely so that we can come out of this on the other side with the ability to help rebuild a new, honest, and sound decentralized monetary system! – Ryan Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at feedback@jeffclarktrader.com. In Case You Missed It… New Smartphone Video Going Viral You have got to see this video that’s going viral… One of the world’s top angel investors unveils a brand-new 5G device… This video is the first time it’s been shared with the public. The value of this device could soar to $5.7 billion – this year. And one company that makes it could be the No. 1 tech stock of 2020. You have to see this video to believe how amazing this device is. |
No comments:
Post a Comment