Lean Hog Futures—Hog futures in the February contract settled last Friday in Chicago at 68.17 while currently trading at 67.27 down about 90 points for the trading week ending on a sour note as this market remains weak despite bouncing off major support.
In my opinion I’m looking at a possible bullish position as I’m currently not involved as I do believe that the August 5th contract low of 63.67 will hold, however I will be patient & wait for the breakout to occur which has to be a 4 week high to the upside so be patient as trading in a sideways and choppy market can be treacherous over the course of time.
Hog prices are still trading below their 20 and 100 day moving average as the trend still remains negative as I am also looking at a possible short position as the spread between these 2 livestock commodities is very wide in my opinion as either hogs have to rally or cattle has to sell off so let’s see what happens in next week trade.
Volatility in the hog market remains high as that has been the case over the last several months with several limit up and several limit down moves on a daily basis so if you are involved make sure you risk 2% of your account balance on any given trade as the proper money management technique and if some type of trade agreement comes about with China a long-term bottom could be at hand.
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