Alright.... you had a week to think about the speculative trade I suggested. The research I followed gave October 17 through November 30 as an entry period. It looks to me that hogs have already bottomed and are poised to make a move to the upside now. Hogs rallied strong the day after I posted this idea last Sunday. Since then, hogs have consolidated into this clean bull flag.
The risk here should be easy to manage. Go long one July Lean Hogs contract at $80.50. Place a stop GTC at $79.85 which is just below the flag. Your risk will be .0065 x 40,000 = $260. Hogs got a bump already on Monday, so I am going to guess that hogs could rally another .18 from here. If that happens, you would gain $7,200 on one contract. That is tremendous risk/reward!
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