Sell August hogs. Sell 81.82 stop. Protective stop 83.85. Potential projection 78.00. (Potential risk $812. Potential reward $1528). Margin: $1485.
Reasons for the Trade:
1. On the monthly chart hogs are backing off from resistance going back several years and forming a preliminary reversal top.
2. The weekly chart formed a reversal top last week – suggesting a trend change from up to down.
3. On the weekly chart the current wave up exceeded projections suggesting an overbought market.
4. On the daily chart the macd has turned negative.
5. Today was an outside day that can trigger a signal and market direction.