Harvesting Yield

Published on
May 8th, 2018
Topic
Trading, Food agriculture, ETF
Duration
13 minutes
Asset class
Equities

Harvesting Yield

Trade Ideas ·
Featuring Michele Schneider

Published on: May 8th, 2018 • Duration: 13 minutes • Asset Class: Equities • Topic: Trading, Food agriculture, ETF

Michele "Mish" Schneider, director of trading education and research at MarketGauge, is bullish on agriculture. She presents a trade on the relevant ETF in this interview with Alyona Minkovski. Filmed on April 30.

Comments

  • CD
    Christine D.
    2 July 2018 @ 21:02
    Looks like it was one of the worst trades I could have made in this period. Interesting example how most people usually have no idea what they are talking about. Not trying to troll, more like reflecting on the situation. As a recommendation it would be very interesting if realvision put together statistics on its trade ideas and would continuously track how have they performed. You could also build a believability stat for each trader who makes the recommendation for each area (agriculture, gold, equities etc) so the viewers could better assess what recommendation has a bigger likelihood of success.
  • AG
    Adrian G.
    20 June 2018 @ 15:22
    Today, we have it for 18,14. Isn't that a good purchase if we consider the forthcoming hurricane season?
  • MS
    Michele S. | Contributor
    18 May 2018 @ 15:27
    Tweet-W/ the stronger dollar, and the firmer rates, DBA which I talked about at @realvision, is still holding what I consider a good support line in the sand-18.40-if can recapture 19.00-that would be positive
    • nk
      nanda k.
      28 May 2018 @ 03:51
      Michele excellent trade and please can you expand a little bit more on ATR and how to decide as ATR changes everyday.Also profit taking how to decide at 8 times or 6 times ATR
  • BC
    Burton C.
    13 May 2018 @ 05:30
    Mish certainly has her stuff together! Very clear and concise idea and parameters. I totally agree with her trade. I am in it myself but I am using the RJA. Very similar composition but performing slightly better. RJA is a bit ahead of DBA in its turn up. This has the potential of exploding upside over the next 6 months
  • MS
    Michele S. | Contributor
    10 May 2018 @ 16:26
    Going out on a limb here folks-today is the day to get in.
  • RD
    Ryan D.
    10 May 2018 @ 03:40
    All RV Trade Ideas should aspire to this level of clarity.
    • MS
      Michele S. | Contributor
      10 May 2018 @ 14:03
      Awesome-thanks!
  • VC
    Vince C.
    9 May 2018 @ 08:31
    Succinct, good rationale and interesting trade idea. Good one Michele!
    • MS
      Michele S. | Contributor
      9 May 2018 @ 13:38
      Thanks Vince!
  • F
    Floyd .
    8 May 2018 @ 23:16
    also consider DBC if you think the commodity complex story looks attractive.
    • MS
      Michele S. | Contributor
      9 May 2018 @ 13:38
      We are long DBC and have taken one profit target. Thanks!
  • SH
    Steve H.
    8 May 2018 @ 20:35
    Why the 8-day delay between filming and posting? Fair enough for a general interview, but too long for a trade recommendation.
    • MS
      Michele S. | Contributor
      8 May 2018 @ 21:12
      Hi. I have nothing to do with the posting, but as for the trade itself, it is inside the recommended buy zone.
  • CB
    C B.
    8 May 2018 @ 19:22
    DBA is structured as a commodities pool, so holders may receive a K-1. RJA gives similar exposure and is also less expensive. Maybe none of that matters for the pro traders!
  • MS
    Michele S. | Contributor
    8 May 2018 @ 17:36
    Any preferred substitute is fine-the broad ideas are the historical low ratio between equities and commodities, the potential for a hot dry summer, geopolitical concerns and rising inflation. I suggest those interested (or not interested) should avoid overthinking.
  • SA
    Sreenath A.
    8 May 2018 @ 17:21
    I like to suggest SOIL ETF if you think DBA is influenced by contango effects. SOIL is however focused on fertilizer stocks.
  • JP
    John P.
    8 May 2018 @ 16:59
    I wonder why the focus on DBA instead of JJGB and GRU. I'd rather have a bit more exposure to the grain markets than coffee and sugar. Right now DBA is heavily weight to cocoa simply because it's up 50% in 2018. Fine if you want that, not fine if you don't realize it.
    • cl
      connor l.
      8 May 2018 @ 18:08
      The reasoning behind the trade is primarily focused on technical indicators. The technical indicators, respective to DBA, are most likely the rationale behind this particular ETF.
  • RA
    Ricardo A.
    8 May 2018 @ 14:20
    Commodity ETFs have have many hidden costs (contango costs of rolling over future contracts). For example in 2016 WTI was up 16% but the USO Oil ETF down 8%. Is this really the best way to gain exposure to commodities?
    • MC
      Minum C.
      8 May 2018 @ 15:27
      Shares in Nutrien (NTR) is another way. They reported today and guided higher, so analyst estimates will be inching up on this name. Your concern about contango costs are less of a concern given the time horizon of the trade being proposed here.
    • RA
      Ricardo A.
      8 May 2018 @ 15:32
      Well, not sure if its less of a concern. The divergence between WTI and USO in 2016 was in a period of 6 months or so. And this trade may not materialise for 12-24 months (if commodities go sideways) .. in which case you may lose a large % of your investment.

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