Cattle May Get Fatter
Each evening we focus on the most interesting aspects for the upcoming trading day. The comments are based on observations of the nightly updates of the Futures and Market Bias pages. They are provided for educational purposes only and are not intended to be direct trading advice. Also, keep in mind that these remarks are made up to 12 hours in advance of the markets opening. Therefore, overnight events may alter the outcome of these observations.
December Live Cattle [LCZ9>LCZ9], on the Pullbacks off Highs List, hit 3 week lows today (a) but reversed to close well (b). This suggests that its longer term uptrend may still be intact. Look for a buying opportunity here.
December Cotton [CTZ9>CTZ9], mentioned last night and on the Pullbacks Off Highs List, is now on the Volatility Explosion-Multiple Days List. This suggests that the move will be higher as volatility reverts to its mean. Look for a buying opportunity here.
Volatility Watch
Once again and even with today’s continued sell off, November Soybeans [SX9>SX9] remains on the Volatility Explosions-Multiple Days List. Continue to watch for a larger-than-normal move (in either direction) as volatility reverts to its mean.
December Corn [CZ9>CZ9] is now on the Volatility Explosions-Multiple Days List. Watch for a larger-than-normal move (in either direction) as volatility reverts to its mean.
Best of luck with your trading on Monday!
Dave Landry
PS-Reminder: Protective stops on every trade!