This analysis is making an assumption the Cash Indexes reflect the actual cash markets. Something I’m not sure of at this time.
Live Cattle (Cash Index): The Index has a price gap underneath its August low of $235, opening the door for a potential island top reversal at some point. The Index closed October priced at $238. 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 $376.51 during October before closing at $347.25, down $17.46 (4.8%) for the month. The index completed a bearish key reversal, again telling us the major trend has turned down. Theoretical Positions: Cash feeders can continue to be sold as planned. If the trend has turned down, from a technical point of view there is a great deal of risk.
Lean Hogs (Cash Index): The Index closed October at $91.53, down $12.73 (12.2%) for the month and on its monthly low. The Index took out its previous 4-month low of $96.339. Theoretical Positions: Cash hogs could continue to be sold when ready.
