June Live Cattle
The Cattle market managed to gets its legs under it in today activity after an early slip to test yesterday’s low of 102.850. To me it appears that the cows established a B wave low when it posted the extreme low of 101.375 in mid-May. If this were truly the case then the subsequent rise to 105.950 follow by the setback to 102.850 would mark the 1st and 2nd wave a 5 legged C wave advance. This is how I am seeing it. The theory states that one should expect the 3rd wave of the sequence to be the strongest and today’s action sure fits the mold. The cattle settled at the high of a rather robust daily limit move. Going out at 106.125 puts it at the post inner slip level which converges with the high volume reading of over a month time period. Tomorrow’s opening should be interesting. If a setback were to unfold I’d expect it to hold the 104.800 level. The 1 x 1 projection of this leg comes in at roughly 108. This is modest measurement. I current prefer the 1.618 extension which suggest a continued advance to +/- 110.500. This is a definable overhead geometric cross level. Please follow along with me in my attempt to stay one step ahead of this and other future markets. I welcome you to reach out to me at Walsh Trading to discuss my insights and suggested trade strategies.
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