Don't Have A Cow Man, Buy Some MOO (MOO)
Shares of Market Vectors Agribusiness ETF (NYSE: MOO) have been on fire with the the rest of the agriculture sector running hot lately and barring any setbacks, I like MOO on a pullback.
This commodity ETF is 100% invested in stocks like Archer Daniels Midland (NYSE: ADM), Potash (NYSE: POT) and Monsanto (NYSE: MON). These stocks have been on fire lately with a surge in demand for their products, as well as the agricultural commodities, such as wheat and corn also having terrific runs as well.
The reason for owning the ETF is that it gives you diversified exposure to the sector, not limiting yourself to just a few companies while also capturing the move up in the underlying shares.
Since bottoming out in July at around $37 per share, they have gone parabolic, gaining $8 in just over a month. I would look for a pullback and consolidation in the sector and on any weakness I would either look to initiate a position or add to an existing one.
Disclosure: no positions in any companies or ETF's mentioned.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.