2 Minute Drill: Mystery Market

Transcript:

Oliver Sloup:

Good afternoon. This is all over slow Blue Line futures coming to you from the suburbs of Chicago. Today is a work from home Friday is Friday, February 23. Before we get into the two minute drill, I do want to remind you guys that we will be down next week in Houston for the commodity classic. So if you're going to be down in Houston at that show, feel free to stop by our booth, we've got a trading challenge, couple giveaways, we'd love to tell you kind of what we're looking at in 2024. And kind of how we're approaching this bear market for clients on the speculative side, as well as the hedging side. So again, if you're going to be down in Houston, stop by our booth, jump in the trading challenge, register for the free giveaway, or just talk markets with us, we'd love to see and meet you face to face, if you're not going to be down there, you can basically search Blue Line futures across all the different social channels, from Facebook, Twitter, YouTube, et cetera, blue light futures, I will be posting a lot of great daily content while we are down in Houston. Today's two minute drill, it was a tough choice, because everyone wants to know where the bottom is for the grain markets and where the good news is for the grain markets. There really isn't any. And today, it was just kind of a continuation of the bleed lower maybe an acceleration of it off the back of a really poor weekly export sales report. I did want to touch on soybeans, we talked about this earlier in the week, the two minute drill kind of wanting to defend these may 31 And June 1 Lowe's and that being a good risk reward opportunity to the buy side, it looked like we had a chance of holding that earlier in the week. But today that did give way so important to manage your risk and kind of know where your tap out points are with regards to that now. Everyone's talking about the grain markets. So I don't want to spend too much time on that because there's nothing really new to say that hasn't been said are already looking over at the livestock side of things. We do have a nice setup here for April live cattle, the trend of higher highs and higher lows as we continue higher into this afternoon's cattle on feed report that has not been out yet. So I ruled out live cattle because I don't want to have say something and then get that overturned by whatever the cattle on feed report says But nonetheless, we're up here against the big resistance levels that date back to this October gap and you're 190 for that April contract. We're here in 183 CASS trade down in Texas so that's going to be something to keep a close eye on as well as the cattle on feed report this afternoon. Some some lofty expectations. Certainly feel the rally here in live cattle and feeder cattle as of late we'll see if they can continue higher as the funds step back into the market which they basically all but got out of here at the end of 2023. All right. Now we can move over to the market that we finally settled on, which is lean hogs so we can go ahead and get that shot clock started. With the two minutes right here. We've got April lean hogs, which have had a nice rally as well here over the last several weeks. But we were on agri talk radio with Chip floor yesterday afternoon kind of talking about this really important resistance level up here near 89. The dates back to this double top back at the end of June and really can go back even further than that. It was a break down point from last March, so about a year ago. So a lot of overhead resistance up here. And what is also a little bit oversold or overbought I'm sorry, as you can see the RSI at 7153. Typically anything over 70 is what's considered as overbought territory. So we're just over into overbought territory. But does that mean the bottom is going to fall out? No, but I think it does represent a potential opportunity here in the short term to see a pullback and where would that pullback potentially take us well, I really think you could see a retest of trendline support which going into next week's trade that's going to be at three and working higher through each day of next week. So at Matala, 84 to 85 by mid week is a potential pullback area now that would be a spot for bulls to be left to be buyers and for bears to look at getting out of positions if they sold against technical resistance up here. Now looking at where fun Stan funds have been adding here over the last several weeks now net long about 34,000 futures and options contracts which is towards the upper end of the range from last year. But if you go back previous that 2022 We saw funds get pretty darn long back here in March of 2022. There along 74,500 futures and options contracts. So if the fundamentals warranted there is room to add and high prices and beef potentially that spurs a little bit more demand from pork as potential art alternatives. So that next two minutes that's what we're looking at I hope you all have a great weekend remember trading futures and options involves substantial risk of loss and is not suitable for all investors


Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

Performance Disclaimer

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.