The liquidation in front of the Quarterly Hogs and Pigs report was reversed as funds bought futures taking price nearly up limit on Friday September 28, 2018. The report didn’t contain any bearish surprises, instead showing numbers slightly lower than expectations prompting buying in the futures market. Traders took price past resistance at 58.25 making the session high at 58.45 but was unable to stay above it, settling at 57.925. Even with this strong rally, price only reached the upper end of its 58.65 – 53.825 trading range. In my opinion, the continued coiling is providing a tightly wound springboard and a breakout could lead to an impressive move in the direction of the break out. Give me a call and let’s discuss buying a straddle or a strangle to take advantage of a possible break out from the trading range.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, October 4th at 3:00 pm. It is free for anyone who wants to sign up and the link for sign up is below. If you cannot attend live a recording will be sent to your email upon completion of the webinar.
**Call me for a free consultation for a marketing plan regarding your livestock needs.* *
Ben DiCostanzo
Senior Market Strategist
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109,
www.walshtrading.com
RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.