Will Live Cattle Die?

August 7, 2001
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.

August live cattle
(
LCQ1 |
Quote |
Chart |
News |
PowerRating) tailed higher but reversed to close poorly.
This action suggests that its meltdown remains intact. Look for a shorting
opportunity here.

The dollar is rallying off of recent lows but
still looks vulnerable. Look for buying opportunities in inverse currencies such
as the September Swiss Franc
(
SFU1 |
Quote |
Chart |
News |
PowerRating).

For the nimble (ONLY!), September heating oil
(
HOU1 |
Quote |
Chart |
News |
PowerRating) gapped higher on the open but reversed to close poorly. This action,
which sets up a Turtle Soup Plus One sell signal, may have trapped
breakout players on the wrong side of the market. Look for a shorting
opportunity here.