Wednesday, April 23, 2008

Bookkeeping: Initiating iPath DJ Livestock ETN (COW) - Make Up Your Own Farm Animal Headline

I've mentioned this name, iPath DJ Livestock ETN (COW) recently as a play on the twin tower effects of (a) governmental ineptitude (ethanol boondoggle) and (b) Fed induced grand larceny against savers and lower/middle class (inflation). While I could see grains having a short term setback if the dollar strengthens, I do believe meat inflation is going to be the next shoe to fall, as producers cut back, creating the next shortage.

The weighting is currently 60% cattle, 40% hogs. Either way, get your freezer stocked up, by Labor Day those BBQs are going to cost a pretty penny. Inflation will eventually push up the value of all finite resources... including stocks! (always a bright side)

I'm starting a new stake with 500 shares @ $43.50s, or a 1.9% stake.

As I've said before I am unclear how useful technical analysis is with commodities but if it has use, this is a nice chart breakout formation I've been waiting for... back over the 50 day moving average and making a heck of a move off a recent bottom. 52 week high is up there around $50.

Long iPath DJ Livestock ETN in fund; no personal position

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