I’ve been short a cattle spread (LE V5 – LE G6) for a little over a week and it’s been a tale of two extremes.
I picked a beautiful entry at parity and immediately saw it move my way. However in the last few days it’s really retraced on what looks like a little bit of short covering.
On Friday we got the cattle on feed report and that proved to be bearish versus expectations with placements coming in higher.
I’ve moved my stop to breakeven so Monday looks like a make or break session for this spread.