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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.  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.
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This PageThe Speculation page is used for educational purposes and to talk about current trades we are in. The Pit is where we post new trade recommendations. This is also a blog page where you can ask questions, post your thoughts or ask for help. Be sure to use an anonymous name as you may not want your neighbor knowing what you are up to. Archives
October 2020
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