January Feeder Cattle failed in its attempt to pull away from the 200 DMA (147.575) today, crawling towards resistance at 148.40 and making the high below it at 148.175. It settled right at the 200 DMA forming a spinning top candle. This indicates indecision in the market as traders navigate long-term resistance. A confidence boosting rally above 148.40 could jettison Feeders toward the November 1st high at 150.00. Failure from the 200 DMA could see price consolidate its gains. February Live Cattle grinded it way higher and held onto its gains as it made its high at 123.00 and settled at 122.90. It settled just above resistance at 122.825. A continuation higher could see price make its way towards the 124.30 resistance level. Support is at 121.90. February Lean Hogs traded below the 200 DMA (65.10) making the low at 64.775. This is a strong support area with the 200 DMA, the 21 DMA (64.975) and long-term support at 64.80. Cracking this support could see price test support at 63.325 and then 61.80. Hogs settled above the 200 DMA at 65.70 just below its high at 65.875. A rally above the high could push price up to the upper part of its trading range. Resistance is at 66.55 and 67.80.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, December 13th 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,
bdicostanzo@walshtrading.com
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.
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.