Commentary: The Live board closed down. The nearby limit again. As indicated Thursday the market is not signaling a low yet. The fundamentals continue to point to potentially further losses. The issue is two fold. First the packer appears to be slowing the slaughter rate. This would cause a backup and continue to pressure prices. Second, the pork market is in a free fall and not yet looking for a bottom. The tech for live with new lows made today is negative with the 14,21 MA a ways off. Look for a further potential slide. If short, follow with a stop. The Feeder market suffers the same fundamentals as the Live. The desire to pay up for cattle is non-existent. The bids are backing off. This too will help keep a price ceiling above the market in the near term. The Feeders made new lows again Friday and could continue the slide. The tech is negative with the 14,21,MA above the market.
Trade Suggestion(s)
NA today
Risk/Reward
Futures-
Options –
BE WELL,
John J. Walsh
President, Walsh Trading, Inc.
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