Lean Hog Futures--- Lean hog futures in the December contract are lower by 50 points this Thursday afternoon in Chicago trading at 61.85 after rallying sharply in yesterday trade as I’ve been recommending a short position from late May and if you took that trade place your stop above yesterday’s high which was 62.75 risking 90 points or $360 from today’s price level plus slippage and commission as the chart structure has improved tremendously. Hog prices are still trading below their 20 and 100 day moving average as we have been in this trade for quite some time but if we are stopped out move on and look at other markets that are beginning to trend as this market has treated as well as the volatility is extremely high at the current time.

If you have not participated in this trade I would still sell at today’s price risking $360 as the risk/reward is in your favor in my opinion because of the fact that the chart structure is so tight. Many of the commodity markets continue to move lower and I don’t think a bottom has been created as I remain pessimistic because the fact of a strong U.S dollar and deflation worldwide as the path of least resistance is to the downside except for the S&P 500 and the U.S dollar. TREND: LOWER –CHART STRUCTURE: OUTSTANDING

So far today I haven't put any orders in!
Dewey