Wednesday, June 13, 2012

Lean Hog Futures Reversal Keyed by Commercial Selling

Futures Trading with the Commitment of Traders Report

Commitment of traders report shows heavy lean hog futures selling.

July lean hogs have rallied more than 13% since the May lows. This has also been a textbook seasonal trade with July hogs rallying into early June and should sell off through the middle of July into expiration. The commercial traders have had their way this market, buying the May lows and now, selling the June highs.
Yesterday’s action was indicative of a technical top as the market posted a new high for the run yet, closed below the previous day’s low.
We’ll tie that into strong commercial selling as the Commitment of Traders report shows that they have shed more than 25,000 contracts in the last three weeks. We are selling July lean hogs and placing a protective buy stop above yesterday’s high at 94.00.

This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to the accuracy, and is not to be construed as representation by Commodity & Derivative Adv. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results

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