Feeder Cattle

August missed filling the gap by a tic.  A trade above Monday’s high of $153.70 will be anticipated to send bears scrambling.  Again, with so much volume of inventory having been traded the past 60 days, in all sectors of weights, those cattle may need a little time where they are.  Were yards anxious to keep replacing marketed inventory, it may take a higher bid to attract them off their current home.  A point of interest would be a close above $153.42 August.  This was the first low close from the contract high close.  That makes this low either a wave 1 or A.  Currently, there isn’t a 5th wave yet, so the overlapping of this on the way back up would make the initial decline to $147.32 close a 3 wave move and hence only a correction.  It’s a little uncanny the resemblance between current price action and the action from January to March.  This has been mentioned before, but with the more time, it is following closely.