We like managing additional risk here in cattle following the nice rally off the lows, especially if you did not manage much or any risk near the highs or on our October 16th hedge alert. (Link to that alert).
We want to be hedged to a point where you are comfortable with where you are at.
Whether that’s puts, futures, or LRP.
If you’d like to talk specifics and come up with a game plan for yourself, please feel free to reach out to us anytime.
Office: (806)484-1214
Why the alert?
Cattle has simply reached some levels where dead cat bounces can often stall. So we think it makes sense to de-risk further in case this is just a dead cat bounce.
Jan Feeders:
We have clawed back just about 61.8% of the entire sell off.
The most common retracement level.
This doesn’t mean the rally “has” to end here. But 50-61.8% levels are where relief bounces can often fail. So makes sense to do something as we’ve got back a good chunk of the recent sell off.
This zone is often where the market will tell us if this is just a dead cat bounce or the start of something more.
Dec Live:
Like on the last rally, live cattle has lagged feeders.
As just like on the last rally, we are a sitting at a set of retracements lower than feeders.
If you notice, feeders are in the 50-61.8% zone.
Where as live cattle is in the 38.2-50% zone instead.
Want to Talk?
Our phones are open 24/7 for you guys if you ever need anything or want to discuss your operation.
Jeremey & Office: (806)484-1214
Sebastian: (605)280-1186
Email: sfrost@dailymarketminute.com
Hedge Account
Interested in a hedge account? Use the link below to set up an account or give us a call.