COFFEE, CATTLE, PART DEUX AND MORE

COFFEE, CATTLE PART DEUX

AND MORE

NOVEMBER 11, 2019

CATTLE: Last week we addressed December Cattle becoming long side unbalanced and warned about being too aggressive if thinking about new long positions. So according to the LAWG 647 Model what do we know? We know December Cattle are in an uptrend. After flailing around December Cattle closed last Friday, November 8 down 27 cents, which has not eliminated being topside unbalanced. We know that December Cattle need to close at or below at or below $99.75 on Friday, November 15 to turn bearish. We know that while that may be possible, it probably not likely. So what to do? We know that as of the close last Friday (November 8) the positive indicator was above the fourth Standard deviation of the long term average but had not reached Negative Equivalency. This is the reason I am reluctant to be an aggressive seller in the immediate and I am willing to miss the market correction if it comes early. Those with greater risk tolerance I would suggest looking for nearby higher values to sell.

SILVER: December Silver turned bearish as of the close last Friday (November 8). It dropped over $1.20 cents in one week. So what do we know? We know that it will take a close at or above $19.082 this Friday to reverse the trend to bullish. While possible I do not believe that is probable. The negative indicator is now above the first standard deviation of the long term average. What to do? I recommend one look for values sell. If and when Silver reaches Positive Equivalency we will look for values to buy.

My name is Lee Gaus and if you would like to see the COFFEE comments go to our website ifgfutures.com. There you will also find articles written by my partners Tom Fritz, Steve Erdman. If you have any questions you can reach me at 1-877-304-1369, 312-384-1166, or email me atlee@efggrp.com. If there is a commodity you would like me to address shoot me an email.

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