Today, we discussed the measured move theory prospect of how we anticipated the corn market, which we had projected bottomed in late August, that we would see up pressed to near the $5.00 level. Today’s rally came within one tick of a measured move theory number we will discuss and could be ready for a minor correction. We also discuss soybean extensions and how we had been anticipating a rally into the new year, as we knew the Trump Traders would be taken to the woodshed with further extreme bearish attitudes last November. Today’s rally in soybean satisfies wave 3 to the upside for us, where we could see a pullback now with another rally contingent upon Argentine rainfall arriving or not next week.
Crude oil has rallied substantially over the last few sessions, and did meet resistance near the 80.00 range on the spot contract and is now retreating on the prospect that Pres. Trump could remove those sanctions, utilizing them for negotiations between Russia and Ukraine.
Finally, we talk about live and feeder cattle and how we’ve been finding the levels that are setting up stall points on both live and feeder cattle. Presently, we have projections that February live cattle, when measured on the continuation chart, could be at a stall point at just under 200 before a setback occurs. Feeder cattle are also in a predicament with the March contract at a discount; it’s struggling at weekly chart resistance, but the recent high had come within $4.00 of our measured move theory that 275 could be challenged by an active contract, which in this case would be the March contract.