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.
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.
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