LE1! (SELL)A breakout of the trendline, a large red candle that pierces the 20-period moving average, and a runout of the RSI. We can wait for the pull-back or enter into position now.
LEQ2017 trade ideas
Is a bigger move on the horizon? Monday’s Slaughter is estimated at 125,000. Unchanged from last week, but 9,000 more than the same week last year.
Monday’s Cutout Values
Choice: 270.55, Up 1.64 from the previous day.
Select: 242.66, Up .87 from the previous day.
Choice/Select Spread: 27.89
5 Area Average Cattle Price
Live Steer:142.12
Live Heifer: 139.98
Dressed Steer: 229.48
Dressed Heifer: 229.62
Live Cattle
Technicals (August): August live cattle futures came out of the gate strong to start the week but gave back some of those early games by the afternoon session. Though the price action was again disappointing as it continues to test the patience of the Bulls, there was no technical damage done. We remain optimistic and believe that a run into the April 25th gap is still possible, but we are starting to run against the shot clock and wouldn’t recommend holding your breath for that move.
Resistance: 137.95-138.75***, 140.275**, 141.625-141.825****
Pivot: 135.575-135.725
Support: 134.20**, 132.775-133.30***, 129.975-130.725****
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.
BREAKOUT WATCHLive cattle futures are on the verge of a technical breakout, something that we've been rooting for for some time now. The cash market remains firm, and the charts are getting more constructive.
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.
Will Live Cattle Ever Fill the GapFriday’s Slaughter is estimated at 125,000. 4,000 more than last week, and 4,000 more than the same week last year.
Friday’s Cutout Values
Choice: 267.89, Down .18 from the previous day.
Select: 241.85, Down .73 from the previous day.
Choice/Select Spread: 26.04
5 Area Average Cattle Price
Live Steer:144.37
Live Heifer: 141.69
Dressed Steer: 232.30
Dressed Heifer: 232.23
Live Cattle
Commitments of Traders Update: Friday’s Commitments of Traders report showed Managed Money were net sellers of 9,968 futures/options, through July 5th. The Bulk of this was new short positions, 7,162. This shrinks their net long position to 14,297.
Technicals: For the week ending July 8th, August live cattle were down .65. The market continues to chop around in the middle of the range over the last two months. Recently, major moving averages have been a roadblock for the Bull camp. Today, those come in at 135.425 (200 day moving average) and 135.95 (100 day moving average). We remain stubbornly optimistic that we can work back out above these levels and potentially make another run at filling the April 25th gap.
Resistance: 135.40-136.05***, 137.95-138.75***, 140.275**
Pivot: 134.40
Support: 132.45-132.775***, 129.975-130.725****
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.
Live Cattle Commodity USA Sun Storm Investment Trading Desk & NexGen Wealth Management Service Present's: SSITD & NexGen Portfolio of the Week Series
Focus: Worldwide
By Sun Storm Investment Research & NexGen Wealth Management Service
A Profit & Solutions Strategy & Research
Trading | Investment | Stocks | ETF | Mutual Funds | Crypto | Bonds | Options | Dividend | Futures |
USA | Canada | UK | Germany | France | Italy | Rest of Europe | Mexico | India
Disclaimer: Sun Storm Investment and NexGen are not registered financial advisors, so please do your own research before trading & investing anything. This is information is for only research purposes not for actual trading & investing decision.
#debadipb #profitsolutions
Live Cattle Continue to Disappoint
Tuesday’s Slaughter is estimated at 126,000. Unchanged from last week, and 6,000 more than the same week last year.
Tuesday’s Cutout Values
Choice: 264.66, Up .84 from the previous day.
Select: 239.87 Down .60 from the previous day.
Choice/Select Spread: 24.79
5 Area Average Cattle Price
Live Steer: N/A
Live Heifer: N/A
Dressed Steer: N/A
Dressed Heifer: N/A
Live Cattle
Technicals (August): Live cattle finished last week with a strong rally, setting the table for continuation to start this week’s trade. As the cattle market has gone recently, that optimism faded quickly in yesterday’s trade as prices retreated and erased nearly all of Friday’s gains. With the market chopping around, many of the technical support and resistance pockets remain unchanged from yesterday’s report. 135.25-135.75 is the first barrier that the Bulls want to overcome to encourage a bigger and more meaningful rally attempt.
Resistance: 135.25-135.75***, 136.20**, 137.95-138.75***, 140.275**
Pivot: 134.70
Support: 132.45-132.775***, 129.975-130.725****
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.
Will Cattle Futures Rally to Meet the Cash Market?
Thursday’s Slaughter is estimated at 124,000. 2,000 more than last week, and 7,000 more than the same week last year.
Thursday’s Cutout Values
Choice: 264.00, Down .88 from the previous day.
Select: 240.57 Down .24 from the previous day.
Choice/Select Spread: 23.43
5 Area Average Cattle Price
Live Steer: 145.85
Live Heifer: 143.55
Dressed Steer: 234.01
Dressed Heifer: 233.98
Live Cattle
Technicals (August): August live cattle made new lows for the move in yesterday’s session but were able to recover and finish the last trading day of the month/quarter/half in positive territory. With the cash market remaining firm, some of the pressure may be attributed to technical selling and end of the month/quarter positioning. We remain optimistic that live cattle will be able to work back towards some of those key moving averages, north of 135.00.
Resistance: 134.85-135.25 ***, 135.975-136.60**, 138.75**, 140.275**
Pivot: 132.45-132.775
Support: 129.975-130.725****
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.
Can Cattle Avoid the Death Cross?
Tuesday’s Slaughter is estimated at 126,000. Unchanged from last week and 5,000 more than the same week last year.
Tuesday’s Cutout Values
Choice: 267.14, Down 1.54 from the previous day.
Select: 243.31, Down 1.93 from the previous day.
Choice/Select Spread: 23.44
5 Area Average Cattle Price
Live Steer: 137.00
Live Heifer: 147.20
Dressed Steer: N/A
Dressed Heifer: N/A
Live Cattle
Technicals (August): August live cattle were lower on the session, closing at the lowest price since May 31st. Yesterday’s close was right in our first support pocket, 132.45-132.775. IF the Bulls fail to defend this pocket on a closing basis, we cannot rule out a further breakdown and retest of the May 31st low, 129.975. Though we remain optimistic, yesterday’s down day is just another notch on the belt for a market that hasn’t been able to get anything going for some time now. Th
Resistance: 134.85-135.25 ***, 135.975-136.60**, 138.75**, 140.275**
Support: 132.45-132.775**, 129.975-130.725****
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.
A Death Cross in Live Cattle?
Mondays Slaughter is estimated at 125,000. 1,000 more than last week and 6,000 more than the same week last year.
Monday's Cutout Values
Choice: 268.68, Up 3.70 from the previous day.
Select: 245.24, Up .22 from the previous day.
Choice/Select Spread: 23.44
5 Area Average Cattle Price
Live Steer: 144.55
Live Heifer: 141.88
Dressed Steer: 235.22
Dressed Heifer: 237.17
Live Cattle
Techncials (August): August live cattle futures broke lower yesterday, taking out the low end of support by .10 but then rebounding into the close. The rebound is encouraging for the Bull camp, but they must defend yesterday’s low on a closing basis to prevent a further decline to 129.975-130.725. On the resistance side of things, our pocket from 134.85-135.25 is the first hurdle for the Bulls to get out above. This pocket represents the 50 and 200 day moving average. Unfortunately, that 50-day moving average is crossing below the 200-day moving average. In technical analysis world, this would be considered a “death cross”. I’m sure you guessed by its label that is is perceived to be bearish. We don’t put much weight into it, but it should be a caution flag for the Bulls.
Resistance: 134.85-135.25 ***, 135.975-136.60**, 138.75**, 140.275**
Support: 132.45-132.775**, 129.975-130.725****
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.
Live Cattle Retreat. Will Support Hold?Live Cattle
Technicals (August): August live cattle were under pressure all day yesterday, trading down to the low end of our first support pocket, 134.85-135.35. Yesterday’s low was 134.85. If the Bulls cannot defend this pocket through today’s session, it may open the door for another leg lower, with the next support pocket coming in near 132.45-132.775. On the support side of things, the Bulls want to get back out above yesterday’s high and the 100-day moving average, 135.975 and 136.60.
Resistance: 137.90-137.95**, 138.75**, 140.275**
Pivot: 135.975-136.60
Support: 134.85-135.35***, 132.45-132.775**, 129.975-130.725****
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.
Live Cattle Consolidate Tuesday’s Slaughter is estimated at 126,000. 4,000 more than last week and 4,000 more than the same week last year.
Tuesday’s Cutout Values
Choice: 267.56, Up 1.06 from the previous day.
Select: 246.70, Up .31 from the previous day.
Choice/Select Spread: 20.86
5 Area Average Cattle Price
Live Steer: N/A
Live Heifer: N/A
Dressed Steer: N/A
Dressed Heifer: N/A
Live Cattle
Technicals (August): It was more of the same for live cattle, trading on both sides of the 100-day moving average for the fourth consecutive session. If the Bulls can chew through resistance from 137.90-137.95, we could (finally) see an extension into the April 25th gap, 138.75-140.275. On the support side of things, 134.85-135.40 is the pocket the Bulls need to defend. This pocket represents previously important price points, along with the 50 and 200 day moving average. A break and close below that pocket would be a dagger in the heart for the Bull camp as it could spur a retracement back to the 132 area.
Resistance: 137.90-137.95**, 138.75**, 140.275**
Pivot: 136.60
Support: 134.85-135.35***, 132.45-132.775**, 129.975-130.725****
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.
Are Cattle Futures on the Verge of a Bigger Rally?
Friday’s Slaughter is estimated at 124,000. Unchanged from last week, but 6,000 more than the same week last year.
Friday’s Cutout Values
Choice: 266.26, Down .90 from the previous day.
Select: 246.53, Up 1.15 from the previous day.
Choice/Select Spread: 19.73
5 Area Average Cattle Price
Live Steer: 143.73
Live Heifer: 142.94
Dressed Steer: 229.73
Dressed Heifer: 229.95
Live Cattle
Commitments of Traders Update: Friday’s CoT report showed Managed Money were net buyers of 10,576 futures/options through June 14th. Much of which was short covering (12,733 contracts). This expands their net long position to 31,926. Broken down, that is 76,596 longs VS 44,670 shorts. This is still a relatively neutral breakdown for the funds, which continues to favor the Bulls.
Technicals (August): August live cattle were choppy to round out last week’s trade, finishing the session right near unchanged, which is also in line with the 100-day moving average, 136.62. Outside markets are firm this morning which may help provide a tailwind to the market. If the Bulls can chew through resistance from 137.90-137.95, we could (finally) see an extension into the April 25th gap, 138.75-140.275. On the support side of things, 134.85-135.35 is the pocket the Bulls need to defend.
Resistance: 137.90-137.95**, 138.75**, 140.275**
Pivot: 136.60
Support: 134.85-135.35***, 132.45-132.775**, 129.975-130.725****
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.
Live Cattle Shrug Off Outside Market WeaknessThursday's Slaughter is estimated at 126,000. Unchanged from last week, but 5,000 more than the same week last year.
Thursday's Cutout Values
Choice: 267.16, Down 1.06 from the previous day.
Select 245.38, Down .30 from the previous day.
Choice/Select Spread: 21.78
5 Area Average Cattle Price
Live Steer: 144.10
Live Heifer: 143.22
Dressed Steer: 229.47
Dressed Heifer: 229.78
Outside Markets as of 6:15 AM
Dow Jones +195 points, Up .65%
S&P 500 +33 points, Up .89%
U.S. Dollar +.665, Up .63%
Live Cattle
Technicals (August): August live cattle were down on the session, but they were resilient in brushing off the carnage that was taking place in the equity markets. Most of our bias this week has been, cattle will go will equities go. The fact cattle were able to hold ground indicates to us that there is good underlying strength in the market as high temperatures and a stout cash market have kept a floor in the market this week.
Resistance: 137.90-137.95**, 138.75**, 140.275**
Pivot: 136.60
Support: 134.85-135.35***, 132.45-132.775**, 129.975-130.725****
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.
Daily Live Cattle Fundamental and Technical Outlook (6.16.22)Wednesday's Slaughter is estimated at 126,000. Unchanged from last week, but 5,000 more than the same week last year.
Wednesday's Cutout Values
Choice: 268.22, Down 1.22 from the previous day.
Select245.68, Down 1.14 from the previous day.
Choice/Select Spread: 22.54
5 Area Average Cattle Price
Live Steer: 143.81
Live Heifer: 142.99
Dressed Steer: 229.10
Dressed Heifer: 229.65
Outside Markets as of 6:00 AM
Dow Jones -571 points or 1.86%
S&P 500 -85 points or 2.20%
Live Cattle
Technicals (August): August live cattle gaped higher on the open as the outside markets showed signs of live. The move higher filled the Monday morning gap and then some. The market finished the session a hair above the upper end of our resistance pocket, 136.625. If the Bulls can continue to defend this, we could see a move back above last week’s highs, 137.90-137.95. Above that pocket and we likely extend into the giant gap from April 25th, 138.75-140.275. On the support side of things, 134.85-135.35 is the pocket the Bulls will want to defend.
Resistance: 137.90-137.95**, 138.75**, 140.275**
Pivot: 136.60
Support: 134.85-135.35***, 132.45-132.775**, 129.975-130.725****
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.
Daily Live Cattle Fundamental and Technical Outlook (6.12.22)Tuesday’s Slaughter is estimated at 122,000. 4,000 less than last week, but unchanged from the same week last year.
Tuesday’s Cutout Values
Choice: 269.44, Down 1.10 from the previous day.
Select: 246.82, Down .63 from the previous day.
Choice/Select Spread: 22.62
5 Area Average Cattle Price
Live Steer: 141.72
Live Heifer: 143.00
Dressed Steer: 225.58
Dressed Heifer: 226.00
Live Cattle
Technicals (August): Tuesday was mostly a nothing burger, with futures trading on both sides of unchanged, only to finish the session near unchanged. As mentioned in yesterday’s report, the outside markets will be the driver, ahead of today’s Federal Reserve announcement. The market is pricing in a .75% rate hike. The announcement will be at 1:00pm CT and a press conference at 1:30pm CT will follow.
Resistance: 136.025-136.625***, 137.90-137.95**, 138.75**, 140.275**
Pivot: 135.10-135.475
Support: 132.45-132.775**, 129.975-130.725****
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.
Live Cattle Fundamental and Technical UpdateMonday’s Slaughter is estimated at 125,000. Unchanged from last week, but 8,000 more than the same week last year.
Monday’s Cutout Values
Choice: 270.54, Down .78 from the previous day.
Select: 247.45, Down 1.44 from the previous day.
Choice/Select Spread: 23.09
5 Area Average Cattle Price
Live Steer: 140.14
Live Heifer: 138.35
Dressed Steer: 226.03
Dressed Heifer: 225.95
Live Cattle
Technicals (August): August live cattle got taken to the woodshed yesterday, along with nearly every other market out there as a risk-off sentiment fed on itself ahead of this week’s Federal Reserve meeting where the chances of a .75 rate hike went from 25% to 94% over the span of one trading session. As painful as yesterday may have been, it prices in the bearishness that comes with a more rapid rate increase and leaves room for outside markets to rally if the Fed only comes in with a .50 hike. If the Fed hiked rates a full point, that would obviously be another story. Needless to say, outside market money flow and sentiment will be a key catalyst through tomorrow’s Fed meeting.
Resistance: 136.025-136.625***, 137.90-137.95**, 138.75**, 140.275**
Pivot: 135.10-135.475
Support: 134.40-135.10***, 132.45-132.775**, 129.975-130.725****
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.
Will Outside Market Influence Today's Cattle Trade? Friday’s Slaughter is estimated at 124,000. 2,000 less than last week, but 5,000 more than the same week last year.
Friday’s Cutout Values
Choice: 271.32, Up .22 from the previous day.
Select: 248.89, Down .72from the previous day.
Choice/Select Spread: 22.43
5 Area Average Cattle Price
Live Steer: 140.52
Live Heifer: 139.41
Dressed Steer: 226.02
Dressed Heifer: 226.00
Live Cattle
Commitments of Traders Update: Friday’s CoT report showed Managed Money were net buyers of 9,265 futures/options contracts, through June 7th. This expands their net long position to 21,350. Broken down, that is 78,753 longs VS 57,403 shorts. In last week's report we noted that this is a historically small position for Managed Money, which could be viewed as Bullish.
Technicals (August): August live cattle failed to get follow through momentum after breaking out above technical resistance on Wednesday. Though the lack of follow through was disappointment for the Bulls (they are probably all used to it by now anyway), there wasn’t any technical damage done on the Thursday/Friday pullback. Previous resistance down near 134.40-135.10 is now significant support. The Bulls must defend this pocket to keep them in control of the technical landscape. On the resistance side of things, 137.90-137.95 is the first hurdle, this was last week’s highs. Above that and we could see the market finally make its way back to the April 25th gap, 138.75-140.275.
Resistance: 137.90-137.95**, 138.75**, 140.275**, 141.625-141.75****
Pivot: 136.65
Support: 134.40-135.10***, 134.40-135.10***
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.
Live Cattle Commodity USA Sun Storm Investment Trading Desk & NexGen Wealth Management Service Present's: SSITD & NexGen Portfolio of the Week Series
Focus: Worldwide
By Sun Storm Investment Research & NexGen Wealth Management Service
A Profit & Solutions Strategy & Research
Trading | Investment | Stocks | ETF | Mutual Funds | Crypto | Bonds | Options | Dividend | Futures |
USA | Canada | UK | Germany | France | Italy | Rest of Europe | Mexico | India
Disclaimer: Sun Storm Investment and NexGen are not registered financial advisors, so please do your own research before trading & investing anything. This is information is for only research purposes not for actual trading & investing decision.
#debadipb #profitsolutions
Daily Live Cattle Fundamental and Technical Outlook (6.8.22)
Tuesday’s Slaughter is estimated at 126,000, Unchanged from last week and 5,000 more than the same week last year.
Tuesday’s Cutout Values
Choice: 271.42, Up 1.84 from the previous day.
Select: 249.56 Down 1.53 from the previous day.
Choice/Select Spread: 21.86
5 Area Average Cattle Price
Live Steer: 141.00
Live Heifer: N/A
Dressed Steer: 222.00
Dressed Heifer: N/A
Live Cattle
Technicals (August): August live cattle were able to defend our pivot pocket from 132.65-132.75 which heled prices recover some of Monday’s losses in yesterday’s session. Though encouraging, it is so far marked down as another failure against our resistance pocket from 134.40-135.10. If the Bulls can chew through this pocket with come conviction it could open the door for an extension towards the 100-day moving average, 136.65.
Resistance:134.40-135.10***, 136.65**, 137.125-137.60***
Pivot: 132.625-132.75
Support: 130.00-130.65***, 126.80-127.30****
Are Live Cattle Trying to Carve Out a Low?Monday’s Cutout Values
Choice: 269.58, Up 2.32 from the previous day.
Select: 251.09 Up 1.07 from the previous day.
Choice/Select Spread: 18.49
5 Area Average Cattle Price
Live Steer: 138.07
Live Heifer: 136.83
Dressed Steer: 221.89
Dressed Heifer: 222.35
Live Cattle
Technicals (August): August live cattle took out last week’s highs then promptly reversed against technical resistance from 134.40-135.10, to finish near the low end of the day’s range. Yesterday’s close takes us back to our pivot pocket, 132.625-132.75. The Bulls will want to defend this area through today’s session, a failure to do so could open the door for a retest of the 130.00-130.65 support pocket.
Resistance:134.40-135.10***, 137.125-137.60***
Pivot: 132.625-132.75
Support: 130.00-130.65***, 126.80-127.30****
Live cattle futuresLong-term chart, price has started a decline that has a potential for -50% from the local high.
Corrective pattern in the middle is a flat correction with s complex wave b.
Hope this is helpful. Meanwhile, looking at wheat futures, will update next
Cattle Continuous Cattle: The gray vertical bars represent the expiration month of labeled contract and have prices of each contract as of today labeled. The 2019 low has provided a pivot for a parallel uptrend line (highlighted in yellow) that has acted as a strong magnet since moving up off the covid crash low. Any of the lines could act as support/resistance. Support area marked in gray, risk area marked in red, and opportunity area marked in green. Deferred contracts can use the uptrend/downtrend lines or highlighted areas as well…
**Could use the shaded areas for 3 way option spreads on deferred contracts**.
Cattle, Corn, S&P500Cattle, Corn, and S&P 500: The fundamentals may be different now compared to in 2008, but I think these 3 markets are well intertwined. The effect of a major drawdown in the equities could impact all markets for a time. It sure seems that Cattle have some strong fundamentals to make a run up as it did from 2010 to 2014, but the timing of when that potential run higher begins is a million-dollar question. If the equity markets find support, beef should be in the race to higher levels with energies and other commodities…. If equities crash further, be careful
