Dave Landry On Steak
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.
March corn
(
CH1 |
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Chart |
News |
PowerRating), mentioned recently, tried to rally earlier in the day
but reversed to close poorly. This suggests its meltdown remains intact. Look for a shorting opportunity here.
For you bottom fishers, March coffee
(
KCH1 |
Quote |
Chart |
News |
PowerRating) gapped lower into the area of recent support and then reversed to
close well. This suggests that it may be putting in a bottom. Look for a buying
opportunity here.
Market Musings
I don’t know about you, but I’m not going to stop
eating steak. Have you ever seen the end of the Flintstones? That steak big
enough to flip over Fred’s car. Well, that’s the size steak I like. I like steak
so much I was delighted to see that the FDA approved an artificial heart today.
Now I can eat more steak and stop exercising (ok, I never really started
exercising).
By now you’re probably wondering if I have a
point in all this. I do. Last time we had the “Mad Cow” fear,
cattle dropped like a rock. Remember the fear from the Oprah thing? That
provided a tremendous longer-term buying opportunity. Anyway, I and millions of others are not going to stop eating meat. So there may be
a longer-term buying opportunity setting up. Especially if farmers are forced
to liquidate due to low prices. Also, there is a limited amount of cold storage
available.* This is NOT to say you should run out and buy cattle/feeder
cattle futures. My point is to watch and wait patiently for a longer-term
opportunity.
Best of luck with
your trading on Wednesday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
*I don’t normally use fundamentals in my trading. Therefore,
if you or someone you know is in the cattle industry and can verify this, please
email me so I can share it with everyone.