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 July 30, 2024

 

 Think again if you think the Cattle Market

has some special immunity to any of what follows here…


As you’ll see in black and white on the charts following, in recent months, almost every major commodity on the board has recently experienced somewhat surprisingly large percentage declines in price…And while rising and falling prices are obviously a norm in the commodity markets, when ALL of the markets are simultaneously dropping sharply, much more often than not, it has been an indication that either the economy is already in a contraction, or is heading towards one…as, simply stated, when economies ARE slowing, there is obviously a direct correlation between businesses cutting back and LESSENING DEMAND FOR COMMODITIES…which therefore tends to result in lower prices…And when prices are falling in everything at the producer level, it’s not hard to imagine that, yes, THE ECONOMY IS ENTERING SOME DEGREE OF A SLOWDOWN…WHICH I BELIEVE  IS THE CURRENT CASE AND WILL CONTRIBUTE TO AN ABSOLUTE COLLAPSE IN CATTLE PRICES…AND I DO MEAN COLLAPSE.

 First up...Check out what has “quietly” been happening to commodity prices

in virtually every major market we trade in recent months…

 

Construction                                   Also construction (carpet, furniture, drapes, etc.)

      

 

Automobiles, Tech                   In “every”industry you can think of…

                 

Energy                                                  

              

 Crops

              

            

 And then there’s this…THE OTHER MEAT CONTRACT…

And look at what it has done. And then

tell me that, for some, reason, the

Cattle market is something different???

And Cattle futures? What have they been doing?

 

And the big picture from the two long term charts below just says it all to me…THIS MARKET IS NOTHING BUT A SHORT…Do observe that all of these swings up and DOWN that you see on this chart might not look big, but percentagewise they ARE…Also to note that all those spikes up and down indicate that WHAT THIS MARKET DOESN’T DO IS GO SIDEWAYS. In other words, it’s way overdue to either go higher…or LOWER…

 Get Short NOW…

 

It ain’t complicated. I don’t give a flying you-know-what about all the “bullish” numbers in Cattle…that the “herd is the smallest it’s been in over 50 years.” I promise you, ALL OF THE BULLISH HYPE HAS ABSOLUTELY BEEN INCORPORATED INTO TODAY’S PRICES…which IS the way it’s always been in EVERY commodity top that’s ever been made…

The entire Cattle Complex has spent the last 9-12 building the highest priced top in its history…and I think you can bet the ranch that both FEEDER CATTLE AND LIVE CATTLE ARE GOING TO DO PRETTY MUCH WHAT ALL OF THE OTHER COMMODITY MARKETS WE TRADE HAVE RECENTLY DONE…WITH ONE EXCEPTION…I THINK THEY WILL GO DOWN EVEN FASTER…AND BIGGER.

 As always, I might be dead wrong, which generally will mean losing what you invest, but as I just don't think the risk vs reward ever gets any better than this, I personally am short, and getting more so…I think this trade can be SO big…

Here are the options I’d buy TOMORROW.

 FEEDER CATTLE

 

LIVE CATTLE

Trades like this don’t come along every day…And I literally think this one is just one good down day away from busting wide open. For Pete’s sake! Call me and DO something with this! Don’t just WATCH it happen…

And an FYI…

 

Thanks,

Bill

 

770-425-7241

866-578-1001

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: Live Cattle, Feeder Cattle, Soybeans, Corn

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