This ETF Has TRIPLED the S&P 500

By: Mike Turner
Editor
Mastering the Markets, Trade of the Week

Published: November 17, 2009

If you've been following the market in recent months, then that shouldn't come as a big surprise. After all, prices for most agricultural commodities have come roaring back as the global economic outlook has improved, and agriculture-related stocks have followed suit.

For example, since the beginning of October 2009, corn price have shot up +20.3%, cotton has gained +13.0%, and wheat has bounced back +26.7%. With most of these commodities still trading well below last year's highs, and with demand on the rise thanks to an improving global economy, I expect this rebound to continue.

This week's Trade of the Week is an exchange-traded fund (ETF) that is positioned to potentially profit from a rising tide in the global agricultural market. The fund has tripled the performance of the S&P 500 as agriculture stocks have rebounded, and I expect those gains to continue in the coming months.

Take a look...

I believe the broader stock market is headed a lot higher between the end of this month and the end of January 2010. And in an upward surging market, I expect agriculture-related stocks to continue to outperform.

A great way to potentially profit from the ongoing rebound in this market is by purchasing the PowerShares Global Agriculture Fund (Nasdaq: PAGG). This ETF tracks the Global Agriculture Index, which includes the largest and most liquid agriculture and farming-related stocks in the world.

PAGG is trading above my 10-week time-shifted trendline. Over the past year, that trendline has served almost like a lower support level. As PAGG moves higher, the trendline moves higher. Each time PAGG sold off, it tended (not always, but mostly) to stop moving lower as it came in contact with this trendline. I expect this positive bullish trend to continue in the coming months.

The entire agriculture industry is trending in a bullish direction. This adds some follow-through and momentum to PAGG's share price, as a rising tide should lift shares of the fund's various agriculture-related holdings.

I like the fact that this ETF is in a very strong bull-mode, having gained approximately +60% during the past year. PAGG could move a lot higher in the coming months if the current trend continues.

Action to Take:

Buy PAGG with a limit order at $25.50 (Good for the Week)

Set an initial stop loss at $22.57

Target price = $28.00

Potential Profit: +9.8%

-- Mike Turner
Editor
Mastering the Markets
Trade of the Week

We're Putting Another $50,000 on the Line With Our Stock of the Month Portfolio
We're so pleased with the performance of Amy Calistri's real-money Stock of the Month portfolio that we're doubling down. We're giving her another $50,000 to put to work using her simple investing strategy. So far her results are astounding. 100% of her picks are up -- as much as +43.0% in just a few months. Don't be left on the sidelines. Go here to get Amy's strategy now.

"Secret" Ratings System Picks Winning Stocks 92% of the Time
What if there was a system that told
you with nearly 100% accuracy which stocks are going up... and nothing more?

I searched for decades for a system like this. A few years ago I finally found one.

See how you can start using it for your own profits. Get the full story here...