Sell February Live Cattle (LCG8)

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.

​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.

​The weekly stochastics and RSI oscillators are at extreme overbought levels.  I expect they will turn lower soon.

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.