Feeder cattle appears to be making a multi-headed top.
I am not a mechanical trader. Even though this trade fits my plan, if I don’t “feel” it, I won’t trade it.
First, I don’t like trading this market. It has been known to gap up and down. Sometimes these gaps are significant. In the chart above, you see can see a few gaps.
Second, this market is known to limit up/down. I don’t like to be in markets that will trap me. Looking at the traders positions, the small traders (i.e. dumb money), have a net short. The large traders and commercial hedgers have a net long. This is very unusual. This adds to the possibility that it could limit up and move against my short position.
I have trouble sleeping at night. I don’t need to have one more thing on my mind.