October lean hog futures’ attempt to rally over the last couple of weeks has run out of gas. Their turning point coincided nicely with technical, seasonal and fundamental resistance. Lets take a look at the combination of factors that could continue to drive this market lower through early September.
This week’s primary analysis focused on, “The Interest Rate Conundrum.” Since this is a macro piece, I thought I’d review the last bits of trading in more detail. The trades over the last two weeks are a great look into the real world of discretionary trading. We’ve had a loser that bounced back as quickly as it knocked us out (sugar), a non-event of a trade (bean meal), a nice winner (silver) and another fish on the hook (hogs). If we can land the last one, it’s a decent week trading….warts and all.