Larry Pesavento: “This week’s focus will be on Live Cattle. The live cattle market is forming another AB=CD pattern following the same pattern for the past few months. The last AB=CD pattern into new high ground is very important as it means a breakout has occurred or a bear trap has been set. Notice the shaded pink areas on the chart as the cattle began their “bull” run. Harmonic moves like these are on all charts and I highly recommend technicians look at them as they are telling a story of cycles in price!
COW, the ETF for cattle, has lagged badly recently which may be another clue as to a potential top in cattle. It is my opinion that this emphasizes why some ETFs are not a good proxy for the actual futures account, but can still be used for exposure in retirement accounts that allow that type of investment.”