Comments for December 2, 2011
Looking ahead to Friday by reflecting back on Thursday’s trading
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors
KEEPING MY BUY SIGNAL FOR FEB. CATTLE FUTURES
MEATS: 12/2/11 Higher closes yesterday for live and feeder cattle while lower for lean hogs. I’m going to keep my buy signal in the February cattle but the more prudent approach would be to sell around 12600 and buy around 12100 until it doesn’t work anymore. Of course it’s easy to look back and see this on the chart below but that doesn’t minimize the potential of this continuing to work since the cattle have been trading roughly between 11875 and 12625 since the middle of June. The feeders settled higher once again still in a strong long-term uptrend overall while moving sideways to higher since the beginning of October and also in the middle of its range. Hogs settled low well off its highs and ending up with its worst low and close in 1 1/2 weeks. The February contract is now in a decent support area needing to hold 9000 in my opinion. BUY SIGNALS FOR LIVE AND FEEDER CATTLE LONG WITH LEAN HOGS. CALL FOR DETAILS!
Follow more livestock futures related stories and commentary at my Livestock Futures blog (www.meatfuturesupdate.com)
Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. Email Rick at ralexander@zaner.com or call toll-free (888) 281-4158.
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors. The information in this Report and the opinions expressed are subject to change without notice. All known news and events have already been factored into the price of the underlying commodities discussed.