Wednesday, January 16, 2008

Agriculture Sector Still Sprouting Winners (MOO)

I like Michael Kahn's Getting Technical column, it gets me thinking (alert the media).

From Barron's:

EVEN WHEN THE GENERAL STOCK market performs poorly over a number of weeks, there are always pockets of strength to be found. One of them has been in the agricultural area and the trend here is still up.

Since October 11, the day the Dow Jones Industrial Average hit its all-time intraday high, that index has fallen by more than 10%. Contrast that to one of the younger exchange traded funds -- the Market Vectors Global Agribusiness ETF, which mirrors the performance of the DAXglobal Agribusiness Index and has gained more than 19% (see Chart 1) during that same period. Clearly, investors have been pumping money into agriculture stocks and there is nothing in the technicals that poses an imminent threat....MUCH MORE