Markets

Windy City trader Trade Tip 12/13/2011 February Hogs

Despite a stabilizing cash market and improving demand, hogs have fallen nearly 7 cents since early December. February futures recently tested major support between 8500 and 8550 and have advanced to 8660 as of this writing. Add this to a market which is very oversold with stochastics readings near 7 % and we have the makings for a strong run higher. I look for a minimum rise to between 8850-8975, possibly this week.

The Trade: Buy February Hogs @ Market (near 8660 now).

The Stop. Place a protective sell stop at 8490. 165 points = $$660 at $4 per point.

Objective: Place an order to sell with a profit at 8975. Objective of $1260 (315 pts)

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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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