A selloff from a lower high would likely be a second leg down from the May high. The six-month tradi...
Why Is Anybody Buying Cattle?
11/06/2015 7:00 am EST
On Thursday, Michael Seery, of SeeryFutures.com, examines the live cattle futures in the December contract and explains that cattle prices are trading below their 20- and 100-day moving average telling you that the short-term trend is to the downside as the volatility is extremely high.
Live Cattle Futures—Live cattle futures in the December contract are sharply lower once again down 250 points settling around 134.60 as I’ve been recommending a short position from the 141/142 level, and, as I’ve kept talking about in previous blogs, I think these price gaps on a daily chart will be filled as this has already been filled at the 139.50 level, however, the other one has not been filled at 133.25, which I think could be possibly executed in Friday’s trade.
Cattle prices are trading below their 20- and 100-day moving average telling you that the short-term trend is to the downside as the volatility is extremely high at the current time, as feeder cattle prices have dropped over 900 points in the last two days, as I think the retest of 130 is in the cards in the next week or two.
I've seen anything yet to the downside.
Hog prices continue to move sharply lower once again as that is finally starting to put pressure on cattle prices, but as a whole, the complex is way overpriced as expansion and less demand are hampering prices at the current time so continue to play this to the downside in my opinion.
Trend: Lower—Chart Structure: Poor
By Michael Seery of SeeryFutures.com
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