Jump to content
Sign in to follow this  

Live Cattle & Feeder Cattle by TrendFollower

Recommended Posts

Some of you may want to have a look at Live Cattle and Feeder Cattle for those interested in riding trends.

2078199785_FeederCattle_20180914_18_08.png.5bb821f71fb2b7f8da12148063af859f.png

 

2088700199_LiveCattle_20180914_18_09.png.f1986ad938baefafa1ed7413d3794c26.png

 

For those who want to manage their risk on the trade could decide to short one of them as a pair trade. If one attempts this type of trade then they need to go long on the one they feel is likely to go up by more points. For example at the time of writing Live Cattle is up 300 points and Feeder Cattle is up 430 points. So one could go long Feeder Cattle and Short Live Cattle. For the aggressive trader they may decide to go long both to maximise any returns / profits. Some of you may just go long on one of them. There are several ways you could play this trade. 

Share this post


Link to post

I mentioned back in September 2018 about going long on both Live Cattle and Feeder Cattle.

Here is today's chart on Live Cattle.

1144116939_LiveCattle_20181227_11_00.thumb.png.9722fddb790575c9b1c10b66d9aeae4f.png

Here is the chart for Feeder Cattle.

676102415_FeederCattle_20181227_11_17.thumb.png.18da44e280477dfa47c0324c257d9a11.png

 

Looking at the charts the more effective trade would be to go 'Long Live Cattle' and 'Short Feeder Cattle' or just simply 'Long Live Cattle' only. 

Live Cattle may not be one of the 'sexy' Commodities to trade or the one reported in the media or the news channels like Bloomberg and CNBC which is why it is the more effective trade as it is away from most of the 'market noise' out there. 

  • Like 1

Share this post


Link to post

Here is the latest charts for Live Cattle:

213349626_LiveCattle_20190108_21_40.thumb.png.76d03a269188d64b6e9e39e1b58630a7.png

As you see the price action is positive and going upwards. 

Here is the latest chart for Feeder Cattle:

1440148553_FeederCattle_20190108_21_41.thumb.png.0a4de546ee3407ce1bd90bddf3d3a9b2.png

As you can see it has gone down in price since I posted the last chart. Therefore the price action is going downwards. 

One of the benefits of trading the so called 'lesser known' or should I state 'less popular' commodities is that you can really focus on the price action which is normally based on strong fundamentals and a strong 'narrative' which does not move at the whim of media articles or so called experts on the famous investment channels.

Food for thought!

Share this post


Link to post

For those on the IG Community interested in this trade and are 'long' stay in the trade and do not sell too early. Your stop loss should only execute your profitable exit once the trend has changed. 

Now speaking of trend changes and it will occur then one must be ready to short the very asset they have just profited from on a long trade. This helps to maximise profits from an asset whether that asset is trending upwards or downwards.

If you look at Commodities such as Orange Juice, Lumber, etc. then this was evident. The trend downwards ends up being sharp and quick. I am expecting the same of Live Cattle. However there is no guarantee and it is certainly not a given. My personal opinion is that it is very likely. 'Assumption Testing' now required. 

So there is likely be a shorting opportunity for Live Cattle so be ready but keep long for now for those with open trades.

Share this post


Link to post

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Member Statistics

    • Total Topics
      6,067
    • Total Posts
      26,616
    • Total Members
      33,736
    Newest Member
    nigelbradley
    Joined 20/01/19 19:39
  • Our picks

    • What's wrong with predictions?
      Join the IG conversation on Community. "There's lots of talk about 'the smart money' banks, institutions, pension funds and the like but not much about the others side of the coin, 'the dumb money', why is that - it's because they just aren't influential to the market. The collective size of the dumb money is dwarfed by the big money to the point of being irrelevant."
        • Great!
        • Like
      • 3 replies
×