a $30 spread with a 2.00-2.50 risk factor but you're probably as close as you can get unless you do it my way and leg into it. The leg in opportunities to get much better than a $30 spread are probably gone. Both markets have another drop just around the corner but cattle usually drop harder and faster than hogs going into April. The hog seasonal tends to give a good bounce and sometimes a Super Ball Bounce. Where as the cattle market tends to continue to open up the Sink Hole into early May or June or sometimes July.

The cattle market has the same disconnected cash/board TEASER that the hogs do which has most in the MOON WATCHER camp. June cattle have probable stopper resistance @ 108.50 area and June hogs have resistance @ 78.50 area-----the $30 spread if they both go up. I have to believe hogs have a stronger seasonal wild card to go up than cattle. As we get into April, that seasonal wild card for hogs gets even stronger and that is when our spread trade account begins to shine------and some years it REALLY SHINES.

The next three weeks both markets have a high probability to CRASH. Cattle will crash harder than hogs(my Hallucination) June cattle have a progression target @ 102.00 but no real strong potential support until the 98.00-100.00. June hogs have a potential progression target @ 74.00 and all sorts of support indicators for a seasonal Re-Balance the chart in early April for the seasonal spring rally. Max overkill for June hogs should be at the 72.00 mark that should start a rally to retest contract highs. June cattle on the other hand usually go into OVERKILL DOWNSIDE about the time June hogs start their seasonal spring rally. My hallucination for likely/probable overkill to June cattle is a retest of weekly chart lows 2 the 94-95 area.

My Hallucination target for my annual short June Cattle/long June Hog spread is a $12 profit. It's not a far fetched hallucination for me to see June cattle trade down to the 98.00 area while June hogs are trading 78.00-80.00. I am seldom patient enough with the paint drying process and usually leave plenty on the table. I usually do manage to deposit $10 from that spread. I usually end up legging out by bottom picking the low for June cattle and holding the hogs for topping clues. This is usually reason I tend to leave 30% on the table. Either the cattle go way lower or the hogs go way higher. I'd have to check my research but my memory shouldn't be too far off------this spread usually blesses those that do it correctly with a 12.00-20.00 dollar blessing. I always, off the top of my head have a goal of making a $15 profit on this annual investment. I don't always get it but I do always leave some on the table.