Livestock futures were under pressure yet again in yesterday’s session as the risk-off mentality came back into play. After the livestock markets closed, the outside markets stabilized with stocks rallying as much as 2% off the lows. Grains initially opened firm on this but have given up gains as stocks retreat in moderate fashion. Watching price action this week, it seems clear that broad-based money flow is the driver. If outside markets can hold ground and rally today, we think that would offer some support to the Ag markets. Keep in mind that today is also the end of the month, also playing a role in money flow.
On the technical landscape the chart is unquestionably bearish, but if you’re trying to squeeze more juice out of this grape, you’re facing down a high risk of a meaningful relief rally. Our final downside target at ....Click this link to get the FULL report!
Feeder Cattle (March)
March feeder cattle made new lows for the move, testing and holding our support pocket from 133.25-134.20. This pocket represents a key retracement, derived from the contract lows in September to the recent triple top highs. This pocket also contains the gap, left from September 20th. If you have been short or want to be long, this is the spot to consider buying. As mentioned in the live cattle section, this is ....Click this link to get the FULL report!
Lean Hogs (April)
Lean hogs got CRUSHED yesterday, locking limit down for nearly all the active months. We would have thought we would get some sort of bid into the afternoon, but it never came. The RSI is now at 24.24, below the level we were at when we bottomed in August. While futures fell, the Index gained .66 to 62.40, putting Feb futures below the cash index. With recent price action, trying to find meaningful technical levels is like having a 4-year old play pin the tail on the donkey... ....Click this link to get the FULL report!
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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.