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Livestock Report


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Live Cattle

The August Live Cattle contract rallied on Monday, May 22, 2017, trading to the high of the day at 123.15, this just below resistance at the 21 DMA (123.575) and the 38.2% resistance level (123.99) of the downmove from the May 4th high (134.55) to the May 18th low (117.475). It fell back from here and ended the session at 122.45. This is just below the 8 DMA at 122.60. The 8 DMA will act as a pivot for Tuesday and a rally above the moving average could see a revisit of the resistance levels and then the 13 DMA (124.45). Resistance then comes in at 125.75. A failure from here could see a revisit of the Friday high (121.40) and then 120.075.

Feeder Cattle

The August Feeder Cattle contract rallied past a confluence of resistance at the 21 DMA (150.875), the 13 DMA (151.475) and the 38.2% retracement level (May 4th high (163.50) to the May 11th low (144.65)) at 151.85 trading up to 153.55. This is just below the 50% retracement level of 154.075. A break above here and then the May 15th high (154.25)set up the 61.8% retracement level (156.30) as a potential target for the upmove. Resistance then comes in at 157.275 and 158.80. Support is at the 38% retracement level and then the moving averages.

Lean Hogs

The July Lean Hogs rallied to resistance at 80.45, reaching 80.625 for the high of the day. This is a new high for the up move, but it failed at resistance and broke down to end the session close to the opening price, forming a
Doji candlestick. If the July Lean Hogs breakdown below the Monday low (79.675) on Tuesday, we can test support down at the 8 DMA (78.625) and then the 13 DMA (78.00). If the market rallies above the high then a move towards resistance at 82.30 is possible.

For those interested I hold a weekly livestock webinar on Friday, May 19 at 3:00pm. It is free for anyone who wants to sign up and the link for sign up is below. If you cannot attend live a recording will be sent to your email upon completion of the webinar.

Sign Up Now

**Call me for a free consultation for a marketing plan regarding your livestock needs.* *

Ben DiCostanzo

Senior Market Strategist

Walsh Trading, Inc.

Direct: 312.957.4163

888.391.7894

Fax: 312.256.0109

bdicostanzo@walshtrading.com

www.walshtrading.com

RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.



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About the author


Ben DiCostanzo
Senior Market Strategist
Walsh Trading

I began my career in the Securities industry working as a runner on the floor of the New York Stock Exchange while I attended Pace University. I then started working for Salomon Brothers in their Government Bond Trading arena. After graduating from Pace University with a degree in Accounting, I transferred to Chicago and became a member of the Chicago Mercantile Exchange utilizing my experience to execute trades and manage risk for institutional clients as a broker for Salomon Brothers on the trading floor. I then embarked to trade for my own account in the stock indices pits as a local before moving off the floor to aid and assist individual clients in their trading endeavors. I now work at Walsh Trading holding a series 3 broker’s license whose duties include being the firm’s Chief Market technician.

I understand that every client's needs are different, and I pride myself in tailoring my service to each client's unique circumstances and needs. Individual client experience, risk tolerance, and capital all play a role in how I approach the markets. I am involved in all markets using technical analysis to find opportunities. My approach is driven by the principles of capital preservation.

My trading philosophy is that if you can recognize and manage the risk, you have a better chance to be successful in trading. I advise clients to always use stops as money management in my opinion is the most important ingredient in trading commodities.

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