Live Cattle Futures— Cattle futures in the April contract are limit up 300 points at 101.65 or 3.04% as this market is experiencing limit up or limit down days on a daily basis as the volatility is as high as I’ve ever witnessed in my 25-year career.
I have been recommending a bearish position from the 124.50 level and if you took that trade continue to place the stop loss at the 10-day high which now stands at 106.87 as an exit strategy as we probably will open sharply higher once again tomorrow as the cattle on feed report was construed as neutral. The U.S stock market is down another 800 points which generally has a negative influence towards cattle prices, but at the current time this market is so crazy I have no idea where prices are headed as I will keep the stop loss and not 2nd guess and see what tomorrow’s trade brings.
The Federal Reserve announced earlier today that they will continue to supplement endless stimulus packages towards the U.S economy which is bullish many commodity sectors, however most of them are lower once again today, but cattle prices are in their own world at the current time and as I’ve said on many previous occasions if you’re not involved avoid as the risk/reward is not in your favor.
CHART STRUCTURE: POOR
If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com
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