Ag and Energy Themes Taking A Much Needed Breather

Big rollovers going on in the ag/energy/materials complex. Yesterday, we sold half of our steel etf (SLX) just to take some profits. Today, we are joining Doug is initiating a position in the short oil etf (DUG), just to hedge some of our energy exposure.

As for ag, we sold most of our ag etf (MOO) last week, as things looked to be getting too frothy. I think the reaction in POT to the outstanding earnings speaks to a near-term top.

Many I speak with think ag is a bubble, and a major top is in place. But I am less certain. I think that after an overdue shakeout, these names will likely rally again. Depending on if they can ever make new highs will tell us more about a potential top.

long DUG, SLX