COTlive Reports

Sunday, January 23, 2011

TopStep Email Alert, Topic Feeder Cattle




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The Feeder Cattle is approaching a critical area and potential top in time and price.  As the daily chart illustrates, this market has been in balance of time for years.  For what ever reason 82 and 123 market days have been in sync.  82 is 66% of 123 or 3 times 82 is 246 /2 = 123.  The math of time is impressive on it's on merit but the market price as well has hit 150% of the low and from the lowest close of 8665 is 129.97.  Use caution in purchasing futures from this point.  Use your speed lines on intra-day and daily charts for support and any violation to show potential trend change.  One must note, that the last high, to corrective low, was less then $10.00.   It was more of a time break then a price break.  Also, be aware that Saturn begins its Retrograde trek on Jan 26th until June 13th.

There are many markets that are also seeing this extreme price movements, Coffee, Cotton, Gold, Copper etc...  all of these markets are also showing mathematical points of extreme concern as potential major swing highs.  Of course, this doesn't mean that it is a high, but likely, if this is not a major high, it still should cause some high level of agitation to the bulls.

The Index Funds have their tentacles in every commodity traded and not traded on the futures.  The stock market is desperately trying to lure the green commodity investors back to the stock market.  Technicals indication tell me that most all the stock and commodity markets have  related interests.  Just as investors are finding out that if Greece would have failed eventually the U.S. would have failed.  Why, because the Index Funds would have failed.  The loss of Taxpayers capital is no consequence to the CIT managers. They are not operating on just one currency, but these big Index Funds are  tied to all the Currencies, tied to all the global commodities, and tied together.  Even though there is dozens of separate entities, they all trade the same markets. So doesn't that make them all a suburb of the same city?

My point to this sidetrack is the Macro Market!  Every market will all go up, or everything will all go down.  The U.S. becomes insolvent or loses it AAA bond rating, everything will go down, gold, silver, beans and stocks, it won't matter.  Remember the Flash Crash that occurred what did the commodities do?  What did Gold do? The flash crash was only a trading error in one stock company that set off a gag reflex in all market, why, because the Long Index Funds are Long all Markets... 

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