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Sell February Live Cattle (LCG8)

11/2/2017

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Research shows that selling Live Cattle between November 27 and December 8 has averaged a $1034 profit 15 of the last 15 years.  Looking at the seasonal chart from Sentiment Trader from November 27 (day 331) until December 8 (day 342) shows a dramatic drop in that time frame.
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​The optimism index for cattle are nearing excessively optimistic levels.  This is what you want to see when contemplating a short futures position......a market which is running out of buyers.
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​The weekly stochastics and RSI oscillators are at extreme overbought levels.  I expect they will turn lower soon.
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The contract size of one Live Cattle futures contract is 40,000 lbs.  This will be a short term position, probably lasting a month.  It would only take just over a $2.60 drop to reach the $1034 average trade profit over the past 15 years.  I am looking for some modest exhaustion in trade.

​I am not yet ready to pull the trigger yet but could any day.  I am awaiting a swing high or an exhaustion candle.  If this is the kind of trade which might interest you, I would recommend getting ready now.  The margin for one contract is $1,500.
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Steve Wade and Tyler Wade of Wade Assurance are associated persons for AgDairy LLC.

                           Commodity Risk Disclosure Statement

The risk of loss in trading commodity futures contracts can be substantial.  You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

Wade Assurance is an equal opportunity insurance provider.
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Steve Wade
swade@wadeassurance.com
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Tyler Wade
​twade@wadeassurance.com
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