COF Sets the Stage for a Short-Term High

Well, you may disagree with me, and that's fine!

But this has been our inclination since that August low—that cattle would be strong during this window.

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Our expectations have been for a five-wave rally, but we're currently in the third wave of that move into the end of the year.

We've also been suggesting that cattle could stall out here in late October or early November.

And, of course, that Cattle on Feed report gave us that stall this morning as we opened right into our 233 resistance level.

That's the 50% retracement when measuring from the August low to the May high. Sorry I can't draw arrows, but anyway!

Now we're due for some kind of a setback. Whether it's shallow or steep, we'll find out together.

It wouldn't surprise me if we saw something down into that 226–224 area before the February contract gets underway again with a rally sometime after Thanksgiving or into early December.

That rally could carry into the new year and at least challenge 238, maybe even something into the 240 range.

But we'll see what the weather looks like as we head into the new year with that February contract.

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*This is not trading advice; past results are not indicative of future results*