Cattle futures went straight to limit up after yesterday’s open, this after opening limit down in the previous session. As we have mentioned for the last several weeks, outside markets have and will likely continue to be the leader. With that said, there were signs of some decoupling yesterday. Stocks retreated near unchanged and cattle held a bid. If stocks trade sideways, we will see that as a positive for cattle. It’s the 1,000 point down days in the Dow that spook the market. The Dow and S&P are down nearly 3% in the early morning trade, likely to put pressure on cattle. We have been looking past the April contract and towards June, August, and October. With the volatility, technicals have been thrown out the window until things settle down and they re-calibrate. So, we will be working with clients to trade a core long position with an intermediate term time frame.......click this link for the FULL report! or email Oliver@BlueLineFutures.com
Lean hogs gapped higher yesterday but failed to hold all of those gains into the close. The market has been trading in a wedge for the last month, posting higher lows and lower highs. This comes to a point where we generally see a bigger directional move, a breakout or a breakdown. We think there may be some opportunity to the upside, but think it is likely limited and there are better opportunities elsewhere.......click this link for the FULL report! or email Oliver@BlueLineFutures.com
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