wmeubank@ocp.kcmo.com
(May 9, 1997) FEEDER CATTLE: October feeders broke to the 7620 support level. Feeders have not had many breaks, so traders might contemplate standing aside for now to see where this break takes us. A break to the mid-low 7500's could be an excellent opportunity. Due to next week's report, most traders should stand aside. More aggressive traders should buy October feeders on 150- 200 point breaks from the high with stops of 100-200 points. This could be an excellent option trade, as it appears that there will be a move of substance. The selloff in corn should provide support. Feeders have a strong demand base that has allowed them to overcome their fear of higher feed costs, and if feed is headed south, so much the better. Seasonal buying should begin to make itself felt. Objective is open. but new highs by a substantial margin are expected.
M. Steven Morgan
Added to the WWW 05-10-97
Last updated on 05-10-97
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com