Is Agriculture ETF Ready to Break Out and Send Bearish Message to Bonds?

To be successful, active investors have to watch (and create) indicators that the mainstream media do not follow.

Trading is hard, requiring discipline and a strict set of rules.

Today, we look at a unique set of sectors and their binary price action: “Monthly” charts of the Invesco DB Agriculture Fund (NYSE:DBA) versus the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT).

As you can see, Ag and treasuries have moved opposite each other for nearly 17 years.

That said, the past 4 years have seen a significant bounce against the trend.

Is it time for a DBA to reverse to the downside? And TLT to reverse higher? Or will DBA breakout?

In my humble opinion, what happens here is a big deal. Stay tuned.

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