MOO – no, I'm not practicing for a Chick-fil-A commercial, although if I find myself in Atlanta I may go take the Chick-fill-A Home Office Backstage Tour. I like oddball companies.
MOO is an ETF based on the top stocks in agricultural products. From mid-2012 until this February, the strong ag stocks propelled MOO to a 25% gain. MOO has since fallen back, setting lower highs, and forming a 2-month long wedge. There have been well-above-average volume up-close days as well as down-close days. At some point, it will break the wedge. I'd say it's a 50-50 bet right now which way it goes.
MOO doesn't have enough history to do a meaningful analysis of its seasonal track record. But most of the top 10 holdings of MOO are familiar names.
Agrium for instance was in a steady uptrend through 2012, forming a well-defined channel. But AGU has traded sideways since. AGU has just returned to the low set back last November. What is especially interesting is volume on down-close days is vastly overwhelming up-close days.
Checking the seasonal pattern, and the option prices on AGU, I quickly cross off the trade I'm most likely to use in this scenario.
But another of the top holdings in MOO does have a seasonal track record that can be traded, and the available options have the right characteristics.
Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, type in www.markettamer.com/seasonal-forecaster
By Gregg Harris, MarketTamer Chief Technical Strategist
Copyright (C) 2013 Stock & Options Training LLC
Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.
Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.
Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.
As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.
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