Farm Progress is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Swift's Market Comments

Market pullback nothing to panic about

Market pullback nothing to panic about
Live cattle seem to be preparing for another wave up and feeders seem poised for the same.


In the live-cattle market, I perceive the decline from the $113.22 February high as the C wave of an irregular A, B, C correction.

Whether February has 30 cents or $1.30 lower to go, I am unsure at this time. However, at present, this wave count does not appear bearish and I strongly urge producers to not fall prey to the lower trade when looking to hedge inventory. I view the correction as a buying opportunity. Outside market forces appear friendly with copper soaring again.

The copper price has been running in recent weeks. Being a building material, that is perceived a strong indication of economic growth.

The reverse head-and-shoulders pattern on the feeder chart suggests if the market can hold above $123.10, it strongly supports a move upward.

Same thing for feeders. The decline from Thursday's high is perceived the C wave of an irregular A, B, C correction. A trade above $126.12 January will lead me to anticipate the correction complete with a new high expected.

This morning, I will readjust the head-and-shoulders pattern for the blue shoulders. All I am doing is stretching the neck line to Thursday's high. If January were able to hold above $123.10 for the right side shoulder, it would be viewed as very strong due to it not having exceeded the previous low as well as making the right shoulder slightly higher than the left.

An investment in futures contracts is speculative, involves a high degree of risk and is suitable only for persons who can assume the risk of loss in excess of their margin deposits. You should carefully consider whether futures trading is appropriate for you in light of your investment experience, trading objectives, financial resources and other relevant circumstances. Past performance is not necessarily indicative of future results.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.