July 10, 2024

 Feeder Cattle Down Again…

2.25 cents today

4.85 cents this week

Sell High?…That’s NOW…

The last time Cattle topped out from record highs was in 2015…and then went down 50%, or $1.20, or roughly $60,000 per futures contract (not all at one time). I THINK WE WILL SEE AT LEAST A 30% DROP THIS TIME…OR ROUGHLY 70 CENTS…AND I THINK THE DECLINE HAS ALREADY BEGUN.

This is my very, very STRONG opinion...maybe the strongest it has ever been in my 44 years of trading. But just because I feel that way does not mean I will be right…and when I am wrong, it undeniably means losing whatever you invest…But just writing it the way I truly see it?  I look at this contract…where it is, and where I think it is going…and absolutely view it as a MINIMUM of $30,000 per contract just waiting to be put in the bank. Again, just because I believe it does not mean I will right…but I don’t think the risk-reward gets any better than this.

As recently noted, with Corn prices going in the tank, Feeders are quietly rolling over precisely when this “very bullish fundamental” of falling feed prices should be rallying them sharply. I THINK THE MOVE IS UNDERWAY…AND LIKELY WILL GO DOWN MUCH FASTER, AND BIGGER, THAN THEY DID IN 2015.

I can’t say it any louder…SHORT THIS MARKET NOW.

Here’s one option I like…If you think I am making sense, I urge you to go ahead and get something done NOW. Considering where we are pricewise, and with the daily futures contract limit being 9.25 cents, it would not surprise me to suddenly (as within a week or two) see this market at $2.40 and moving hard. After all, $2.40 is only 14 cents  below today’s close…or just 1 ½ times the daily limit.

Don’t just watch this. DO something with it…I honestly don’t think it EVER gets any better than this…

Pick up the phone…????

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