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Besides All-Time Highs, What’s in DBAs Basket?

Published 03/12/2024, 01:18 AM
Updated 07/09/2023, 06:31 AM

Not the first time I have given readers this list of leading indicators to watch for a potential rise in inflation:

Last week we focused on sugar.

For the weekend, we focused on silver.

The dollar, also on the list, trades under 103 yet into support.

Today, DBA the Invesco DB Agricultural Fund made a new all-time high.

DBA tracks an index of 10 agricultural commodity futures contracts.DBA-Daily Chart

Specifically, the underlying index includes corn, soybeans, wheat, Kansas City wheat, sugar, cocoa, coffee, cotton, live cattle, feeder cattle, and lean hogs.

Besides making new all-time highs, DBA is also outperforming SPY.

On Real Motion, momentum is picking up and has not been above the Bollinger band since July 2023.

While momentum is not quite there yet, we imagine should it clear the BB, it will be significant as price should be a lot higher than current levels.

Big picture, tied in with our analysis on sugar future and why they are a key barometer to predicting rising inflation, so is this ETF.

ETF Summary

S&P 500 (SPY) 510 pivotal-as in below could see more correction

Russell 2000 (IWM) 205 area support to hold

Dow (DIA) 385 support 400 resistance

Nasdaq (QQQ) 435 key support

Regional banks (KRE) 45-50 range

Semiconductors (SMH) maybe ready to see levels back down to 208

Transportation (IYT) 69 area now support

Biotechnology (IBB) 140-142 resistance 135 support

Retail (XRT) 73 support

iShares iBoxx Hi Yd Cor Bond ETF (HYG) 77 big number to hold (still)

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