CATTLE SELL SIGNAL & HEDGE ALERT
On Friday we issued a hedge alert for cattle.
We now like scaling into even more protection.
Whether that is puts, futures, or LRP.
On Friday our advice was to be in the realm of 50% hedged. We now like being up to 75% hedged here. You could also look at rolling up your puts or LRP levels.
If you want to talk specifics or have any questions at all don’t hesitate to give us a call or a text. As futures are not suitable for everyone so you may want to use options instead.
Jeremey: (605)250-3863
Lauren: (806)391-7178
If you would like to work with us one on one and open a hedge account with us call our office:
Office: (806)484-1214
Why the alert?
Friday we hit our first target in both live and feeder cattle. Which was 50% of the entire sell off.
Today we gapped open higher and are approaching that secondary target in live cattle.
Which reclaims 61.8% of the entire sell off. The most common level for a correctional bounce to fail.
We are above the 50-day MA, but now up against the 100-day MA in live cattle.
Feeders have not ran up to that secondary target like live cattle has.
But since live cattle is approaching the target, this signal is also for feeder cattle.
Feeders also left a gap. We have already quickly given back a good part of that gap.
Something else to note is that on both live and feeders, the 50-day MA crossed below the 100-day MA. I don’t love MA cross overs as they are somewhat of a delayed indicator.
But that is considered a “death cross” and suggests we are in a longer term downtrend.
Then we do also have open interest suggesting that this rally is shorts leaving the market rather than new longs piling in. As open interest has been decreasing not increasing. Not usually something you see in a market that is going to run up and post new highs.
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Here is extended access to our Black Friday sale that ended a few weeks ago.
Past Sell or Protection Signals
Dec 5th: 🐮
Cattle sell signal & hedge alert.
Nov 17th: 🌱
Soybean sell signal & hedge alert.
Nov 13th: 🌽 🌱
Managing risk in corn & beans ahead of USDA report.
Oct 28th: 🌽
Corn sell signal & hedge alert.
Oct 27th: 🌱
Soybean sell signal & hedge alert.
Oct 13th: 🐮
Cattle sell signal & hedge alert.
Aug 22nd: 🌱
Soybean sell signal & hedge alert.
July 31st: 🐮
Cattle sell signal & hedge alert.
July 10th: 🐮
Cattle sell signal & hedge alert.
CLICK HERE TO VIEW
June 5th: 🐮
Cattle sell signal & hedge alert.
June 2nd: 🌾
MPLS wheat sell signal.
April 10th: 🌽
Old crop corn sell signal.
March 19th: 🐮
Cattle hedge & sell signal.
Feb 18th: 🌽 🌾
Old crop KC wheat & old crop corn signal.
Jan 23rd: 🌽 🌱
Corn & beans old crop sell signal.
CLICK HERE TO VIEW
Jan 15th: 🌽 🌱
Corn & beans hedge alert/sell signal.
Jan 2nd: 🐮
Cattle hedge alert at new all-time highs & target.
Dec 11th: 🌽
Corn sell signal at $4.51 200-day MA
CLICK HERE TO VIEW
Oct 2nd: 🌾
Wheat sell signal at $6.12 target
Sep 30th: 🌽
Corn protection signal at $4.23-26
Sep 27th: 🌱
Soybean sell & protection signal at $10.65
Sep 13th: 🌾
Wheat sell signal at $5.98
May 22nd: 🌾
Wheat sell signal when wheat traded +$7.00
Want to Talk?
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Hedge Account
Interested in a hedge account? Use the link below to set up an account or shoot Jeremey a call at (605)295-3100.