Investors pushed the Agribusiness ETF—creative symbol (NYSE: MOO)—to new recovery highs, but has price moved too far too fast?
Let's look at a critical weekly overhead resistance level - the final level for bears to hang their cowboy hat on - that should give us a clue if the ETF price overheated, or still has room to roam.
In the last three weeks, three significant policy announcements have been made. The Federal Reserve stated it is firmly committed to Quantitative Easing and will double its balance sheet before the end of 2009. Treasury Secretary Geithner announced a plan to get toxic assets off of bank balance sheets.