Cultivating Gains In Agribusiness

JC Parets
July 18, 2019

From the desk of Tom Bruni @BruniCharting

Last week I posted the mystery chart pictured below to see what people were thinking once they removed the biases of knowing the security name, timeframe, or etc. and had only price to rely on.

Most people were on the same page as I am, thinking this is a structural trend change that we want to be buying, not selling. A few people were hesitant and wanted to see more before getting involved, but very few, if any, were sellers.

With that said, the big reveal is here and the chart is...the Agribusiness ETF (MOO) / Basic Materials (XLB) ratio, signaling outperformance from this area is likely to continue many months and quarters to come.

Click on chart to enlarge view.

So now that Agribusiness is on our radar, what do we do with this information?

I sat down with Real Vision to discuss why I think buying AGCO Corp. is my preferred way to express this thesis in the market.

A Long-Awaited Breakout In AGCO Corp.:

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