Hogs

How high will June contracts go? 82.

Hog prices may go higher than 82, but 82 is a good place to take profits. That is because speculators are getting into this market after the consolidation. They will pile onto a move higher in the hopes of riding the move into a short term chop. Don`t be fooled that this is real demand, but instead look at it as the last portion of a move. When those same speculators hold too long, as they get greed, price will reverse. That could be as high as 85 - 87, but trying to hit those prices is not worth the risk. If shorts come into the market, they can stall price around 82-84, and then get the action to reverse. So, take the money and wait for the next opportunity… like shorting price as it peaks.

It may be a nutty trade but I am starting a short trade in July hogs!
Dewey