I use to do that 22 years ago, and kick myself sometimes for years of missing the huge moves, take out half position and leave the rest on at breakeven if you got in high enough. I have often taken off half at decent first targets and then watch the rest erode away, but impossible to get the trades that last years, toughest part if not checking on it much, once or twice a week.
Live Cattle - Top ?
- Thread starter syswizard
- Start date
Well, I got in near the top of the move and the price hit my target. I believe that price will be supported at this level, so I'm gonna sit out for now. Besides, I'm a short-term swing trader.
Very good exit.
Something we are looking at in our office on the feeder cattle. Jan. Feeder cattle are at $221.52, while the feeder cattle index is at $235 today, about a $13.48 gap. Expiration on the Jan contract is 1/29, and the contract settles back to the cash traded index. That gap is enormous, and cash trade seems to be well supported right now. It would seem that the futures price and the cash index need to converge. It almost seems too obvious though, and maybe we are missing something.
Am still sitting with my original shorts, was hoping Live cattle would have gone just a little higher so I could have added, maybe later. Feeders didn't go high enough either for me.
Didn't go high enough during the rally and dropped further down, am anticipating rally, so have done Put Credit Spreads on Friday's close. But remaining short in all the meats. Feeders made quad bottom going back to July last year on dailies.
Just doing mainly Rollovers in Live Cattle and Feeders short and long in Hogs. Add on deep retracements and hedge, and when going too over extended with trend, when bars are too large and volume shortens will do Credit Spreads or short term spreads. Just a matter of patience, sitting on hands.