Be advised that all my comments are my OPINION and that OPINION is based on my long term in-house model that I dubbed LAWG 647. The prices I use in my model are week ending prices, usually Friday.BTW, trading commodities is risky and not meant for those that faint at the sight of blood.
June 30, 2020
CATTLE POSITIONED TO MOOOOOOVE
Six weeks ago the Model showed August Cattle moved from a downtrend to an uptrend, https://www.ifgfutures.com/cattle-special-report/. Since the first of the month August Cattle have traded in an ever narrowing sideways range. The daily high was $98.32 and the daily low was $93.57, but the weekly closes which are used for the Model show a high of $96.17, and a low of $95.32. The Model is suggesting that August Cattle are clustering in ever narrow range, showing major support/resistance at $95.00/97.90, with secondary support/resistance at $95.90/96.80.
Let’s quickly review what the Model tells us.
August Cattle is in an uptrend needing a close at or below $88.90 on Thursday (no market Friday) to reverse to a downtrend.
The week following the number moves to $92.55.
Both Positive and Negative indicators are within the first standard deviation of the long term average.
The RSI (which is not part of the Model) is sitting at 50
What do I think?
It is my opinion based off of my experience with the Model that when we have the aforementioned clustering strap up and get ready for the ride. Does it always happen? No, but I am strapping in just in case.
If you are interested in what our trading strategy will be drop me a line at lee@efggrp.com or give me a call at 312-384-1166.
Lee Gaus is a founding partner of EFG Group founded in 1992 which specializes in servicing Introducing Brokers. Prior to founding EFG Group Lee Gaus, Tom Fritz and Steve Erdman all began their Commodity Futures careers with ADM. Collectively Lee, Tom and Steve have over one hundred years of experience in the industry.
International Futures Group (IFG) founded in 1994 is a sister company to EFG Group specializes in serving institutions, professional traders and individual investors.
We believe our experience and the development of the Model provide our clients, Introducing Brokers and individual clients a unique perspective. If commodity trading is what you do drop me a line at Lee@efggrp.com or give me a call at 312-384-1166, or 1-877-304-1369. We will be glad you called and are confident so will you.