1-22-2003 9:55 PM
Special Pig Report
Over the last several days I conducted my own private survey of a variety of traders. When a person has been in the business for almost 24 Years you run into all sorts.
The question was what did they think about the Pig Market in general?
The answer was a resounding Bearish Outlook by most, they are ready to' Throw out the Baby with the bath water so to speak' most funds and traders are SELLING into this break , that's what they do. Only a very small percentage of Traders and professionals are even thinking of buying.
I expressed my opinion that a trader should be looking to Buy the Summer Hogs June..in this price area, the resounding reply was Your NUTS.... Markets are a funny......
In my opinion One of most important things a trader needs to do is to See Clearly beyond the noise. So for a moment I would like everybody to look past the current devastation occurring in the Hog market. And think about this.
First, from a trading standpoint you are entering a period where a fellow is going need June hogs down the road . We already know Supply has dwindled a bit... Second, the economy sucks But housing is doing great, families are buying new homes or moving into existing homes at a near record pace. What I am trying to say is that shitty as things are ..someone is going to attend a ball game next summer and do a barbecue in their back Yard !
I recommend Traders assume a long Posture in June hogs for the Pull at this Current time, There are a number of Option strategies to consider. Buying Calls in June, sell calls against longs for protection. Hearty Traders could Sell Puts but that's a bit riskier.
Personally I like Buying a bit of June at the current price region and Holding..
My recommendation is that Bi-weekly Traders Buy June hogs at the current price for trading and look to assume a long posture to hold after we begin our new trading year after the first week or so in June when we normally get flat and begin again..
--Premier Traders should stay tune for flashes --
Happy Trading
Bill