Michael Seery, of SeeryFutures.com, explains that his short position recommendation was wrong since lean hog futures continue to move higher on a daily basis, suggests a reason as to why, and thinks he will probably do less countertrend trading in the future.
Lean Hog Futures—Lean hog futures in the June contract settled last Friday in Chicago at 78.95 while currently trading at 80.10, continuing its bullish momentum up over 100 points for the trading week, as I was recommending a short position around the 76 level getting stopped out around the 79.50 level, taking a loss on this trade as I was dead wrong as prices continue to defy gravity moving higher on a daily basis. One of the fundamental factors pushing hog prices up is the fact that McDonald's (MCD) same-store sales were outstanding as they have continued their breakfast menu for 24 hours, pushing up pork demand here in the short-term, so at the current time I'm sitting on the sidelines licking my wounds, looking for another chance at entering into this market.
Hog prices are trading above their 20- and 100-day moving average telling you the short-term trend is to the upside, and when I originally recommended this trade, it was a countertrend trade which I don't do very often and probably will do less in the future as trading with the trend in my opinion is the way to go over the course of time. To read the entire article click here.
By Michael Seery of SeeryFutures.com
Tickers Mentioned: Tickers: MCD