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Windy City trader Tip 9/1/2011 Hogs

In June the October hogs broke out above the head and shoulders bottom at a price of 8450, Futures Have slid down from 9050 in mid August and came right to that 8450 low today. We are very oversold here with Stochastics readings at 7 %, both live and feeder cattle held important support today and I do expect a bounce from the 8450 level for October hogs. We are currently trading at 8475 and support is solid between 8300 and 8325. Each point for hogs is $4 and the margin isn't too bad at $1600. I look for futures to test resistance at 9000 in the weeks ahead.

The Trade: Buy October Hogs at Market (currently 8475)

The Stop: Place a sell stop at 8295, risk is 180 points or $720 from 8475 to the stop

Objective: Place an order to sell the October Hog at 8990, $2060 from 8475 to 8990

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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