August 20, 2024

Looks like the next

BIG LEG DOWN

has started…

Since last Thursday, Feeder Cattle have dropped about 10 cents, or $5000 per futures contract…I absolutely believe they are starting another “leg” down, that will be substantially bigger than the 20 cent drop they had during the first 3 days of August. I TRULY BELIEVE THIS MARKET IS BEGINNING AN OUTRIGHT PRICE COLLAPSE AND CONTINUE TO RECOMMEND BUYING PUTS IN BOTH FEEDER CATTLE AND LIVE CATTLE…

What I DON’T  suggest is that if you think this is a viable idea, that you sit there and wait for some wonderful rally to get short into…My 150% view is that THEY ARE ON THE MOVE NOW…and that, when coming off bull market highs, they typically DO go relatively straight now…such that “hoping for a rally,” is usually wishful thinking…Obviously, just because I have a strong opinion does not mean I will be right…and if I am wrong, you will almost certainly find yourself losing money…but for my money, THE RISK-REWARD JUST DOESN’T GET ANY BETTER THAN THIS…As they say, “You can’t win (or lose) if you don’t play.”

To me…this big picture just SCREAMS, “GET SHORT!” and stay short….

Some of you guys KNOW a bit about this market, or just KNOW how the markets work, and think I am probably right…but are just sitting there…WATCHING IT HAPPEN. For Pete’s sake, DO something with it!

Call me…

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: Feeder Cattle, Live Cattle