Futures Commentary and Analysis

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Week 2017-05-22 - Sit on the sidelines - Hogs
Henry Ledyard - IF - Fri May 19, 3:56PM CDT
This Week

FOMC minutes are the most interesting release this week. Politics will continue to spook markets, with fundamental market information doing very little to effectively drive price. So, unless the Fed actually announces QE to infinity, don`t expect markets to care. Interest rates are their only tool, and that power is limited by market belief. At this point, the markets are predominantly uninterested in any Fed chatter.

So, this week I really don`t have anything for you to watch. It is probably a good week to take money out and sit on the sidelines.

Hogs

How high will June contracts go? 82.

Hog prices may go higher than 82, but 82 is a good place to take profits. That is because speculators are getting into this market after the consolidation. They will pile onto a move higher in the hopes of riding the move into a short term chop. Don`t be fooled that this is real demand, but instead look at it as the last portion of a move. When those same speculators hold too long, as they get greed, price will reverse. That could be as high as 85 - 87, but trying to hit those prices is not worth the risk. If shorts come into the market, they can stall price around 82-84, and then get the action to reverse. So, take the money and wait for the next opportunity… like shorting price as it peaks.

DISCLAIMER:

YOU ARE AN ADULT and must make your own decisions. ONLY YOU know what level of experience you possess. ONLY YOU know what level of risk you are willing to take. ONLY YOU know what your financial goals are, and to what lengths you are prepared to go to meet those goals. You will be the one to wear your losses, so trade with caution and do your own research.

Henry Ledyard is an independent trader. He has NO affiliations with banks, brokerages, funds, trading houses or markets. He trades for himself and posts trading ideas merely to share information. He does NOT want your money, advice or opinions. He does NOT want your unsolicited emails. If you require further financial advice, seek it elsewhere. Henry`s opinions should be considered as addled as his blog site:

www.addlepated.com.au


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