Live Cattle (Cash Index): The cash index extended its major (long-term) uptrend to a high of $242 during September before closing at $240, unchanged for the month. The Index has a price gap underneath its August low, opening the door for a potential island top reversal at some point. Keep an eye out for a downside gap during early October. Theoretical Positions: Cash cattle can continue to be sold when ready. We need to keep an eye on the index given it has left a series of upside gaps on its monthly chart.
Feeder Cattle (Cash Index): The cash index extended its major uptrend to a high of $365.61 during September before closing at $365.33, down $0.19 for the month. This could be viewed a bearish spike reversal, telling us the long-term trend has turned down. Theoretical Positions: Cash feeders can continue to be sold as planned.
Lean Hogs (Cash Index): The Index closed September at $104.775, down $1.146 for the month. We need to be careful with the market as it could be indicating a major technical top is building. Theoretical Positions: Cash hogs could continue to be sold when ready.
