Despite a stabilizing cash market and improving demand, hogs have fallen nearly 7 cents since early December. February futures recently tested major support between 8500 and 8550 and have advanced to 8660 as of this writing. Add this to a market which is very oversold with stochastics readings near 7 % and we have the makings for a strong run higher. I look for a minimum rise to between 8850-8975, possibly this week.

The Trade: Buy February Hogs @ Market (near 8660 now).
The Stop. Place a protective sell stop at 8490. 165 points = $$660 at $4 per point.
Objective: Place an order to sell with a profit at 8975. Objective of $1260 (315 pts)

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