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Live Cattle and Feeder Cattle were both sharply lower on Friday, closing their respective limits down. The will have expanded limits today of 10.75 and 13.75 today. 50-day moving average support was breached aggressively in both those markets, for the first time since April in Live Cattle and for the first time ever for the current Feeder Cattle contract. I would expect more pressure in the form of margin liquidation this week and look for both market to test their respective 100-day moving averages. Grains jumped aggressively higher overnight on weekend news of a potential trade deal with China. The Nov 1st 100% tariffs seem to have been set aside, at a minimum, and statements have hinted at further announcements, hopefully with specifics, at a later date. Soybeans, Soymeal and Wheat all have gapped higher on the news (Beans most aggressively) and are pointing toward higher prices. Corn didn’t “gap” but is also up 6-7 and trading at about 1 1/2 month highs. Precious Metals are lower today, with Gold and Silver trading below trendline support. Stock Indexes also gapped higher (ES, NQ and YM) on Asia news and earnings this weeks. The Fed is expected to lower interest rates by 1/4 point on Wednesday this week.
My charts indicate a new trade signal in the US Dollar Index futures this morning.