by Jim Wyckoff, Senior Analyst TraderPlanet.com

DECEMBER LIVE CATTLE

December live cattle closed up $0.30 at $97.60 yesterday. Prices closed near mid-range and did score a mildly bullish “outside day” up on the daily bar chart yesterday. Prices have been trading in a sideways trading range for nearly two weeks. Bulls were encouraged yesterday by ideas that cash cattle will fetch higher money when trade commences laster this week. However, lower “outside markets” limited buying interest in the cattle futures yesterday. Last Friday afternoon’s monthly USDA cattle on feed report was deemed neutral to bearish. The next downside technical objective for the bears is closing prices below solid support at yesterday’s low of $96.82. Bulls’ next upside price objective is to close prices above solid chart resistance at last week’s high of $98.27. First resistance is seen at $98.00 and then at $98.27. First support is seen at $97.00 and then at $96.82.

Wyckoff’s Market Rating: 5.5.

NOVEMBER FEEDER CATTLE

November feeder cattle closed up $0.35 at $111.65 yesterday. Prices closed near mid-range on short covering in a bear market after prices last Friday closed at a bearish weekly low close and hit a fresh 3.5-month low. Prices are still in a six-week-old downtrend from the September contract high. The next downside price objective for the bears is to produce a close below solid support at $110.00. The next upside price objective for the feeder bulls is to produce a close above solid resistance at $113.50. First resistance is seen at $112.00 and then at $112.50. First support is seen at yesterday’s low of $111.25 and then at last week’s low of $111.00.

Wyckoff’s Market Rating: 4.0.

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Source: VantagePoint Intermarket Analysis Software

DECEMBER LEAN HOGS

December lean hogs closed down $0.02 at $56.90 yesterday. Prices closed near mid-range yesterday and dropped to a fresh 12-month low. A lower cash hog market yesterday limited buying interest in the futures. The bears still have the solid technical advantage. A steep 2.5-month-old downtrend line is still in place on the daily bar chart. The next downside price objective for the bears is closing prices below technical support at $55.00. The next upside price objective for the bulls is closing prices above solid chart resistance at last week’s high of $59.10. First resistance is seen at $57.50 and then at $58.00. First support is seen at yesterday’s low of $56.45 and then at $56.00.

Wyckoff’s Market Rating: 2.0.


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Source: VantagePoint Intermarket Analysis Software

FEBRUARY PORK BELLIES

February pork bellies closed down $0.67 at $82.72 yesterday. Prices closed near mid-range and hit a fresh contract low again yesterday. The bears still have the solid near-term technical advantage. The next upside price objective for the bulls is closing prices above solid resistance at $85.00. The next downside price objective for the bears is closing prices below solid chart support at $82.00. First resistance is seen at yesterday’s high of $83.40 and then at $84.00. First support is seen at yesterday’s contract low of $82.25 and then at $82.00.

Wyckoff’s Market Rating: 1.0