Are We Nearing A Bottom?

Research Posts Livestock Round Up

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Cattle markets have been extremely volatile to start the week which has led to sharply lower prices. Are we nearing a short term bottom?

Live Cattle

Technicals (December – Z)

Yesterday’s live cattle trade went about as expected, volatile and choppy on both sides, acting as a meat grinder for newcomers with weak hands on both sides of the market.  Today, we expect to see more of that.  Ultimately, we think there’s pretty good fundamental and technical support near these levels.  175.85-176.55 is the line in the sand the Bulls want to defend.  A break and close below that pocket could spark additional technical pressure.  On the resistance side of things, 182.00-182.50 is the first hurdle for the Bulls to overcome. 

Resistance: 182.00-182.50***

Pivot:  180.35

Support: 175.85-176.55***, 172.80-172.90**

Seasonal Tendencies

Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line). 

*Past performance is not necessarily indicative of futures results.

Feeder Cattle

Technicals (January – F)

January feeder cattle traded into and held our support pocket from 233.37-234.95.  The Bulls will want to continue defending this through today’s trade.  A failure to do so could cause another wave of selling pressure with the next support pocket not coming in until 229.00-229.50.  On the resistance side, yesterday’s high is the first hurdle at 239.225.  Clearing that obstacle could take us to the gap from 242.325-243.05.

Resistance: 242.32-243.05***, 246.42

Pivot: 239-240

Support: 233.37-234.95***, 229.00-229.50**

Seasonal Tendencies 

Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).

*Past performance is not necessarily indicative of futures results.

Lean Hogs

Technicals (December – Z)

December lean hogs tested our pivot pocket yesterday from 67.32-67.80 but ultimately failed.  This pocket will continue to be monitored closely as it could act as a point of control for the market.  A continued failure there keeps the Bears in control.  A breakout and close above starts to encourage a reversion higher. 

Resistance: 70.775-70.90**, 74.00-74.500***

Pivot: 67.32-67.80 

Support: 65.40-65.67**

Seasonal Tendencies 

Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).

*Past performance is not necessarily indicative of futures results.

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Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

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