Ranchers and Cattle Traders,
Last week I put out a possible market turning call to sell Oct Feeder Cattle at 157.05 right into the Cattle on Feed report which happens from time to time on event trades which this kind of feel into. Is it really safer to trade on reports? I talk about behavioral science when these conditions present themselves and how human behavior flips people into short-covering right when you should be flat and selling these indicators called my olive sell’s.
Monday we are limit down so we had another good low-risk, high impact turn where my objective is to catch the majority of the previous range which appears in order as the market consensus was badly flawed and caught market participants wrong footed. OCT FEB by the way had OLB -9.32 at same time.
I have a few more of these conditions in gold $1292, cotton, crude oil on this big push higher. Only Feb Cattle flashed a pair of olive sell’s in the 120.00 handle also in front of report. If your trading I think patience waiting for these high impact turns is the way to trade with tight stops. We stay fresh with small loses but this cattle was also an add short, before we went limit down on chart. Stay tuned to these stories but I expect big market swings to continue. Trade smaller and look for larger price swings which can keep your commissions in check. Feel free to give me a call if you might subscribe to this floor trader methodology of looking for winning trades and having some patience to wait for the olive line that was my nemesis for so long on the trading floor.