Fairlead Strategies Idea Generator
Teucrium Corn Fund (CORN) & Update (VIXY)
Our short-biased ETF recommendations have performed well with the latest downdraft, but as with any long ideas, it is prudent to keep tight stop-loss thresholds. For VIXY, we are raising our recommended stop-loss to $13.78 from $13.10.
It is challenging to find compelling bullish charts in the equity market, so we sourced commodities as an alternative and found the Teucrium Corn Fund (CORN):
CORN is in a long-term uptrend supported by the weekly cloud model, in addition to the monthly MACD indicator, which shows long-term momentum to be positive even after CORN’s summertime correction.
Underlying corn prices have positive relative strength versus the equity market, and they have recently cleared short-term resistance, instilling a minor breakout in CORN that puts next major resistance at the April high ($30.30).
We recommend long positions in CORN to take advantage of its short- and long-term momentum. A price objective can be derived from resistance, and the rising 200-day (~40-week) moving average (MA) can be used as a trailing stop-loss.
Teucrium Corn Fund (CORN, $27.08)
Target: $30.30
Stop-Loss: $25.28 (200-day MA)
