May 25, 2021
Feeders are up 14 cents in 3 weeks…
And just getting started…
As noted in previous newsletters, the $2.00 Corn rally, in one month, is what turned Feeder Cattle sharply lower during April...With Corn having now crashed a $1.00, and I believe having conclusively ended the bull market there, I look for Feeders to rocket out of here...and rapidly catch up to where I believe they would have been if not for the blow-off in Corn. I truly think they can go straight up from here, and while I might be dead wrong, I am anticipating something like 8 out every 10 days being on the upside for the next few months.
I encourage you NOT to think, “I missed it.” I continue to see the Cattle Complex as THE most undervalued commodity on the board, and fully expect to see the same massive FUND MONEY, that has driven so many markets into the stratosphere, DO EXACTLY THE SAME THING HERE. I have no end target in mind, but for starters, I can easily envision August up in the 180’s before it goes off the board.
Again, just because they are now 14 cents off their lows, DON’T think you “have missed it.” It’s NOT so much where you buy, it’s whether or not you have the direction right…and are in something that can make a BIG MOVE…And I think we have both here…Direction and the potential to hit the 180’s.
LONGER TERM - The dead sideways range swings since 2016 have averaged about 25 cents…SO…to look for 30 cents on the upside from here…when the market is MOVING…would really be no big deal at all…
Back on track I think…
Don’t just WATCH…If you have the bucks to risk, and think this makes sense, give me a call…
All option prices in this newsletter include all fees and commissions. All charts, unless otherwise noted, are by Aspen Graphics and CRB.
The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: Feeder Cattle