Last week June Live Cattle opened at 122.300 and closed at 121.300. Last week’s WASDE showed short-term bearish, but longer-term bullish. And what do you know, look what “big money” is now doing in Live Cattle.
Proceed to Page 2 for the latest COT Data...
Look no further than the weekly chart and the COT report below to get the best picture of how big money is posturing in live cattle. Looking at the newer Disaggregated report, you can see how Producers went from a net short of -53,780 contracts on April 5 to a net short of -82,715 contract this past Friday, May 10. This is a bullish move. Watching this week to week you will know where the direction live cattle is headed and if in fact there is enough beneath the move up to get the price action well above 124.000. Need proof of this? Just keep watching and have a prosperous trading week.
If you need help understanding how to understand how to use the NEW COT report to your benefit get instant access to my new e-book "What Lies Beneath ALL Trends". It is filled with eye opening information.Commercial Net Tracker instructions: This form tracks the Commitment of Traders (COT) data for the commodity futures market. This form "looks" at the most recent five weeks of COT data and provides visual indications of the data. A) If the current value is at a 12-month low, the cell will display a red/burgundy background. B) If the current value is at a 12-month high, the cell will display a green background. C) If the current value went from net negative to net positive, the cell will display a blue background (indicating a bullish condition). D) If the current value is both a 12-month high and also went from a net negative to a net positive, the background will be green. You should view the data with green backgrounds to determine if they also went from net negative to net positive.
Proceed to Page 3 for this week's detailed fundementals...
On the daily chart below you can see the tight price action over the last few days bouncing off of 120.000, the range bottom. With ADX at 22 this is a weak trending market now and DI Differential is at 1.78. MACD is bearish and Stochastics are in deep oversold territory. Weak trend in deep OS territory, technically time to watch for a correction up. Could see a retest of 124.000, and if so with big money’s new bull posture starting we could definitely see the break above 124.000.
Click to enlarge.
Have a prosperous trading week.
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