Live Cattle Setting Up

February 28, 2002
Dave Landry

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.

May cotton
(
CTK2 |
Quote |
Chart |
News |
PowerRating), mentioned recently, formed a bearish outside day down
on Thursday (a). This action suggests that it remains vulnerable.

April live cattle
(
LCJ2 |
Quote |
Chart |
News |
PowerRating) is setting up as a
Bow Tie “Kiss” pattern. See my article under Traders University for
more on this pattern.

For you longer-term players/bottom fishers, the March Yen
(
JYH2 |
Quote |
Chart |
News |
PowerRating) looks
like it is trying to find a bottom at life-of-contract lows. For the short-term
players, wait for a rally and look to play the first pullback (which could set
up as a Bow Tie).