Mike Cintolo
Cabot Top Ten Trader
Geoffrey Seiler
Bullmarket.com
Sy Harding
Street Smart Report
Nicholas Vardy
Bull Market Alert

Grain gains: Barclay’s iPath Grain ETN


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by Richard Schmidt, editor Stellar Stock Alert

Perhaps the best opportunity we see right now is in the commodities. We’re looking at agriculture, particularly the grains, and recommend an immediate buy of Barclay’s iPath Grain ETN (JJG).

ETNs are exchange-traded notes, usually issued by a bank, that correspond to a particular market. They trade just like ETFs, but instead of having a basket of assets, they simply move with a specific market.

This ETN “seeks performance corresponding to the Dow Jones UBS Grains Total Return Sub-Index. The more this grain index goes up, the higher the ETN will go up. It is readily available through any brokerage account.

JJG has a very strong bottom in place after a short correction. It has already started to move up, jumping up through the 50-day and 200-day moving averages.

The 50-day moving average has turned positive and is ready to move north of the longer-term average – a strong buy signal.

JJG is currently selling for around $48. We’re buying JJG up to $50 (remember, these are short-term trades – don’t chase them). We have a target price of $55. We’ll sell if the ETN drops below $44.62 (current support).

Learn more about this financial newsletter at Richard Schmidt's Stellar Stock Alert.

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