This just in: Cows CAN fly.
The evidence lies in the chart below of the Livestock Total Return ETN (NYSE:COW). The chart shows that the ETN has been moving lower since June.
But in mid October, something changed.
The candlestick on October 19 was not extraordinary. But that day was very special. The important characteristic is the volume. On the 19th, vol was the largest since February 22 and nearly 6x the monthly average daily volume. That spells capitulation. And the scenario has played out since. Buying began the next day with above-normal volume and has followed through ever since.
Momentum has shifted, too. The RSI is now in the bullish zone and rising after being oversold on the 19. And the MACD has moved into positive territory after crossing up that same day. It now sits at the 50-day SMA with a lot of room to the 200-day SMA above before any major trend reversal can be proclaimed. But until then, a short-term trend higher looks legitimate and ready for more.